Good Natured Products Inc V.GDNP.H

RE:Text from submission for CCAA

[davgro]

dileas48s wrote:

7. The Company has limited remaining cash on hand and is unable to make payments on its secured funded debt obligations as they become due, Absent obtaining additional financing in the near term, the Company also will be unable to meet its normal course obligations as they fall due. As such, the Company is insolvent and the relief sought herein is urgently required for the Company to maintain the CDNP Business, preserve value for stakeholders, and maintain the status quo.

Anticipate an announcement by the TSX Venture Exchange that trading of GDNP.H shares is halted for "failure to maintain exchange requirements".  This will be followed by an eventual delisting of the shares which will make them worthless and untradeable.

 

At that point, or if a Cease Trade Order (CTO) is issued, you have the option to use a "Deed of Gift" to transfer the shares to your broker at a zero cost base.  This will produce a record of the disposition of your shares that you can use to claim a capital loss for tax purposes.  Keep in mind that a capital loss is only of value if you held your GDNP shares in an unregistered account.  The capital loss is worthless if the shares were held in a registered account like an RRSP, RRIF or TFSA.

At present the choices are wait and see what transpires with the restructuring, sell now for some return of capital, or gift the shares when they become untradeable for a capital loss.
 

The chance of GDNP shareholders receiving any return for their shares in any restructuring is non-existant at this point.  Just my opinion.