The divestment of assets at firesale prices has officially begun for Wayland Group (CSE: WAYL). The company issued an evening press release last night, identifying that it was now in the process of divesting multiple assets from its collection.
First and foremost, the company has seen approval granted for the sale of its Columbian subsidiary known as Colmed Pharmaceuticals S.A.S. Originally purchased by Wayland in 2018 via the issuance of 11 million common shares, the transaction was effectively valued at $22 million. The company however entered into an agreement on February 2, 2020 to sell the assets for cash proceeds of $300,000 to that of RG5 Investments and Albert Sheeler.
The sale represents a 98.6% loss for that of Wayland Group on its Columbian assets. Wayland has failed to file any financial statements since the announcement of the asset purchase, thus making it unclear the true value of the assets purchased and now subsequently sold.
In addition to the Colombian asset sale, Wayland has also entered into an agreement to sell its entire 100% interest in that of Haxxon AG, its Swiss cultivator. Originally purchased in May 2018 for a total purchase price of $9.4 million in a combination of cash and shares. Subsequent filings indicated a goodwill of $8.7 million associated with the transaction, suggesting that Wayland significantly overpaid for the assets.
Those Swiss assets have now been sold for “nominal cash consideration” and the assumption of all of Haxxon’s liabilities and obligations to that of RMR Gartenbau GmbH. Essentially, it appears the company is giving away the assets to get the debt off of its books. The sale remains conditional on the satisfaction of certain closing conditions.
Finally, the court has also approved the termination of the prior agreement entered into among Wayland Group and ICC International Cannabis Corp.
Wayland Group remains halted for trading on the CSE.
Information for this analysis was found via Sedar and Wayland Group. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
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