|
Source: Green Growth Brands Inc.
COLUMBUS, Ohio, May 29, 2020 (GLOBE NEWSWIRE) -- 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.
On May 29, 2020, the Court extended the stay period until June 12, 2020 and adjourned to June 1, 2020 the hearing to consider a motion filed by the Company to: (i) increase the amount of the Court-ordered charge (the “DIP 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”); (ii) approve the implementation of a sale and investment solicitation process (the “SISP”); and (iii) approve 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 its said capacity 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 Company intends to provide further updates on the CCAA proceedings and SISP process when there are significant developments.