If anyone is still long or interested in this play, here's the latest from Ted Ohashi (who I'm sure may be pretty hated around here if anyone followed his sunniva recommendations.
Sunniva (CSE: SNN) (OTC Pink Sheets: SNNVF) survived another hearing under the Companies’ Credi- tors Arrangement Act (CCAA) on Friday. I have been working off the court documents that have been pub- lished later on the hearing day but in this case, the hearing was held at 3:00 p.m. Pacific Time on a Friday so the (a)
(b) (c)
(d)
(e)
(f)
summary documents have not been posted yet. Here is a summary of what I understand took place: SNNVF argued once again that the best approach for creditors is to go through arbitration to preserve their leasehold interest in the California operation.
Matrix Venture Capital Management entered a formal application response that basically objected to SNNVF’s arguments point by point.
In an affidavit from a broker with a Canadian Investment dealer, it was reported that Hadron Capital LLP confirmed an agreement in principal to contribute to the financing for a principal amount of US$1,000,000 with interest payable thereon at the rate of 20% per annum for a five year term. Hadron has initiated a wire transfer of $100,000 as a good faith deposit.
It was also confirmed that the Canadian investment dealer has commitments for CA $1,948,350 in- cluding the Hadron commitment of which $450,000 can be immediately released to SNNVF under a Secured Noteholders Agreement.
It appears the Judge expects an unsecured financing to see SNNVF through arbitration. I anticipate this will be an issue for Hadron and the individual investors. This is a difficult hurdle to overcome in a short period of time in my opinion.
The next hearing is scheduled for January 15, 2021.
Conclusion: the good news is SNNVF received another extension until January 15, 2021. It is also a plus that the road forward in the CCAA process seems clearer. How-
ever, the band of solutions is getting narrower. Subject to seeing
the summary of the court proceedings, it appears it will be neces-
sary for SNNVF to raise the money to see it through arbitration on an unsecured basis and report back to the court on January 15, 2021. As SNNVF had traded as low as $0.05 per share earlier in the week, I think there was some concern that another extension would not be granted. So at the very least, this news could come as a brief respite to the market.