Heritage Cannabis Holdings Corp C.CANN

New Press Release - Heritage Cannabis Obtains Creditor Protection to Pursue Restructuring and Sales Process

Toronto, ON, April 02, 2024 (GLOBE NEWSWIRE) -- Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announces that the Company and its subsidiaries sought and obtained an order for creditor protection (the “Initial Order”) from the Ontario Superior...read article.

[inviolablspirit]

Well, I was certainly wrong about this company!  Below is some information on CCAA.  Hopefully, they can restructure the company and continue to go on or sell it off.  Does WEED want Heritage as they do some white labeling for them?  Sell the company to WEED.  At least get something for your shareholders.   The Companies' Creditors Arrangement Act 

[bober2]

It doesn't look good the creditor BK holdings a major supporter in the past is demanding the money and Heritage is not meeting their listing requirements on the CSE.  The company has to br restruched because it's not meeting its listing requirements on CSE.  A rollback is going to happen in the near future .  

[inviolablspirit]

Based on the news release it seems to me the company is not looking to restructure, but is moving towards the sale and investor solicitation process (SISP).  So what is Hertiage worth to another company?   Current market cap is $10.59 million.   This covers the debt they owe.  Their assets are worth more than that.  Would another Cannabis company be willing to pay 2-3

[lscfa]

Co. has $66M in tax loss carryforwards that could be used by an acquiring co. that is profitsble.

[inviolablspirit]

Heritage seems to have good products and has access to all provinces and 2 territories in Canada and is operating in the US.  It seems like a very possible takeout candidate at these low prices.  So a possible scenario would be the sale of the company through the SISP, where David probably gets a BOD position in the company that takes them over, the lenders get their money back, new

[inviolablspirit]

I don't think I'll be selling today.  I'm willing to wait a bit and see what restructuring or possible sale occurs.  WEED could easily take us out for a few cents, since we do their white labels or one of the other larger cannabis companies.

[bober2]

I think restructuring means a consoldiation for sure and sale of the company if they can find a buyer

[inviolablspirit]

At these prices the company shouldn't have a tough time finding a buyer.  I still think WEED would be a top candidate for a buyout.   In the end, investors can probably thank the good old Canadian Government for killing off these cannabis companies.  I suppose they never stood a chance. The government was extremely greedy in taxing cannabis companies.  With 12% profit

[bober2]

If another cannabis company buys them out the consoldiation will be quite severe because of the 1.1 billion shares outstanding  somewhere in the 20 to 1 range..  Which will leave us with little stock to play with. I told Clint a long time ago he was spread to thin and now we're paying for it.

[inviolablspirit]

At WEED's current price of $14.67 they could buy CANN for two cents (i.e. market cap = $21.16 million) and it would cost WEED 1.44 million shares of dilution.  At 3 cents (market cap = $31.74 million) and it would cost WEED 2.16 million shares of dilution.  That's nothing for WEED to dilute their stock 1.4 to 2.16 million or even a little more to take over CANN.  

[bmeister2]

What else could one expect from Turdhole and company. Far past time for that regime of incometants to be gone,just like the weed!!

[inviolablspirit]

As I thought, the wonderful Canadian government is making it very difficult for the company to succeed.  Anyone who has every had to pay your tax to the government in installments knows how difficiult the government makes it to pay them back.  They really do add on penalties that make it extremely dificult to pay. 135. "Payments under the Excise Tax Arrears Payment Arrangements are

[bober2]

I can't understand why Heritage is behind in paying their excise tax to the government .  Where is the accountant looking after the books so this doesn't happen in the future.  The government wants their pound of flesh or they'll shut you down.

[inviolablspirit]

I can completely understand.  The Canadian government made is very difficult for cannabis companies to get a foot hold in the industry by over taxing the cannabis industry.  This has also lead to the difficulty in stamping out the black market.  Cannabis companies in Canada are only making 12-15% profit margins, whereas the profit margins are 30-50% in the US.  For a country

[Always6]

They just got a new extraction machine????? Idont get it!

[inviolablspirit]

Where did this extraction machine go?  US or Canada?  

[bober2]

Clint just emailed me and the situation is quite serious.  Unless Heritage gets bought out and the bidder pays the excise tax owing Heritage might lose their cannabis licence.  The old deal Heritage had with CRA is off the table and a new deal has to be put in place to prevent Heritage from being delisted from CSE if they want to continue to operate on their own without being taken over

[reyesingup]

I remember the very important words of the CANN's management - saying they will never ever go into debt. and will make sure that this company only expands as much as their income will allow. And now here I am with a large amount of shares at a high price per share....  One can never trust management - there is always some sort of manipulation and corruption that boots a public company