RE:Sell or Hold?If an offer is made you will be asked to vote on it via a proxy ballot in due time. If at least 2/3 of those voting accept the offer, you will be entitled to receive your amount /share when the deal closes. The only time you are likely to lose your investment is if they are forced into CCAA or receivership, or nobody wants to buy your shares. Halting the trading of shares is also possible for a multitude of reasons.
When a company agrees to terms of financing which are onerous, that is usually an indication of desperation. In Jan./20 they agreed to pay 15% on a $2M loan for 60 days, which was extended another 60 days on the condition that the lender gets $.06 shares (exercised warrants). If that loan has to be extended again on June 8/20, further shares (warrants) will likely be issued.
While CCAA is not likely here (IMO) because of a dominant shareholder (MMJ), unless you have rock solid info regarding a sale, the risks far outweigh the potential returns (IMO). The market for desperate companies appears very poor presently with cash being tight. The most likely scenario is a merger with another desperate company. I would look for a company that is not struggling, has market share, and can get financing on reasonable terms (non-dilutive). There the odds are with you.