Filed Sedar yesterday CALGARY, ALBERTA, September 26, 2022 - Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.DB, SUGR.WR, SUGR.WS, SUGR.WT) (OTCQB: SBUDD) ("Sugarbud" or the "Company") reports that, with the authorization and approval of its Board of Directors, it has determined to file notices of intention to make a proposal (the "NOI") under the Bankruptcy and Insolvency Act (Canada), as amended (the "BIA") today for itself and its subsidiaries, which will provide for creditor protection through a stay of proceedings while the Company seeks to restructure its affairs.
The decision to seek creditor protection was taken after careful consideration of available alternatives, the Company's cash position, forecasted revenue and expenses, scheduled debt payments and demands for payment and notices of intention to enforce security received from the Company's lender on September 22, 2022. The Company expects that it is likely to default on several material debtor agreements due to ongoing liquidity constraints. Following consultation with its legal and financial advisors, the Board of Directors determined that it was in the best interests of the Company and its stakeholders to file the NOI and obtain creditor protection.