COLUMBUS, Ohio – Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and certain of its direct and indirect wholly owned subsidiaries (collectively “GGB”, the “Company” or the “Applicants”) today provided an update on its insolvency proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”).
As announced on May 20, 2020, the Company filed for insolvency protection under the CCAA and obtained an order from the Ontario Superior Court of Justice (the “Court”) granting the Applicants protection under the CCAA for an initial 10 day period until May 29, 2020, as extended until June 12, 2020.
On June 2, 2020, the Court granted a motion filed by the Company and issued an order (the “Amended and Restated Order”): (i) extending the stay period until August 15, 2020; (ii) increasing the amount of the Court-ordered charge over the Applicants’ assets, property and undertakings in connection with the Applicants’ debtor-in-possession financing agreement with All Js Greenspace LLC (“All Js”) (the “DIP Agreement”); (iii) approving the implementation of a sale and investment solicitation process (the “SISP”); and (iv) approving a stalking-horse agreement (the “Stalking Horse Agreement”) among the Company, All Js and Capital Transfer Agency in its capacity as the debentureholder trustee of the Company’s (A) US$45,500,000 aggregate principal amount of 15.00% secured convertible debentures that matured May 17, 2020 and (B) US$23,717,000 aggregate principal amount of 5.00% secured convertible debentures maturing in 2024 (All Js and Capital Transfer Agency in such capacities are collectively referred to as the “Secured Credit Bidders”) pursuant to which the Secured Credit Bidders would act as stalking-horse bidders under the SISP.
The SISP will be conducted within the CCAA proceedings under the supervision of Ernst & Young Inc. (“E&Y”), the Court-appointed monitor of the Applicants, and will be used to identify one or more purchasers of the Company’s assets. The SISP sets forth the manner in which potential purchasers submit bids, including the applicable deadlines for the submission of bids. Under the SISP, the current deadline for delivery of initial non-binding letters of interest is 5:00 pm (Eastern Time) on July 6, 2020. It is anticipated that the SISP process will be concluded by August 31, 2020.
A copy of the SISP, Amended and Restated Order and other Court materials and information related to the Company’s CCAA proceedings, all as may be updated or amended from time to time, are available on the website maintained by E&Y at www.ey.com/ca/ggbi.
The Company intends to provide further updates on the CCAA proceedings and SISP process when there are significant developments.
About Green Growth Brands Inc.
Green Growth Brands creates remarkable experiences in cannabis. The company’s brands include CAMP, The+Source, and 8 Fold. GGB is expanding its cannabis operations throughout the U.S., via dispensaries in Nevada, Massachusetts and Florida. Learn more about the vision at GreenGrowthBrands.com