Post by
WeeblesWobble on Nov 07, 2019 11:57am
Think About It ...
MYM advanced $676K (CAD) to CROP and Elite for the Nevada CBD hemp project. The CBD hemp crop was an abysmal failure that could have been (and likely should have been avoided). MYM and CROP amended their arrangement such that CROP would refund MYM's original investment.
CROP (and its associated/affiliated/subsidiary entities) are in default of secured debt obligations. That code for imminent receivership/bankrupcty. Given this, what was the likelihood of MYM getting its refund? Nada.
So for approx. $4 million (non-cash consideration), MYM effectively acquires CROP and its assets at a fire sale price. The deal has the support of CROP biggest creditor. Evidently some independent person believes MYM mgmt can realize sufficient gains on the distressed assets so as to enable secured creditors to realize something more than zilch on their secured debt.
Can MYM mgmt turn the distressed assets around? Stay tuned tomorrow to find out, same Bat time, same Bat channel.
Comment by
SolidInvestment on Nov 07, 2019 12:18pm
This was a great move by MYMs management. IMO