Vancouver, British Columbia--(Newsfile Corp. - May 18, 2022) - Biome Grow Inc. (CSE: BIO), (OTCQB: BIOIF), (the "Company, BIO") announces that MYM Nutraceuticals Inc. ("MYM") has filed a receivership application ("Application") in the Ontario Superior Court of Justice against the Company and its wholly owned subsidiary Cultivator Catalyst Corp., in connection with outstanding credit facilities granted to the Company and Cultivator as previously announced by the Company on July 27, 2020.
MYM is seeking, among other relief, an Order appointing KSV Restructuring Inc. ("KSV") as receiver and manager over all of the undertaking, properties and assets of the Company (the "Property"), which includes shareholdings held directly or indirectly by the Company, of IM Cannabis Corporation ("IMCC") which have been pledged as collateral to secure the above noted Credit Facilities.
On May 12, 2022, MYM and the Company agreed to adjourn the Application in order to allow the Company to appropriately respond to the allegations made by MYM in its application materials and to file responding materials. The matter was adjourned until May 26, 2022. As part of the adjournment, the Company consented to terms intended to ensure the preservation of the Property and requiring the consent of MYM to be obtained in advance of any disposition or dealing with same, other than in the ordinary course of business. Such terms were incorporated into an Order which was granted by the Honourable Justice Gilmore on May 12, 2022 as an Interim Order pending the return of the adjourned court appearance in this matter, which Order additionally included certain further provisions requested by MYM concerning disclosure of the existence and location of Property of the Company. This disclosure has now been met.
Khurram Malik, CEO of Biome Grow Inc., commented, "We support the mutually agreed upon preservation relief that has been endorsed by the Court and which will allow the Company to prepare its response to the Application. It is our belief that the IMCC stock price and current public market dynamics are significantly decoupled from the implied value represented by IMCC of its business through its financial disclosures. The current market value of the IMCC stock held by the Company exceeds the aggregate value of the MYM's claims as stated in the Application before the Court and the Company looks forward to resolving this matter in an efficient and timely manner. We do not believe, under any circumstances, that it would be in the best interests of the shareholders of either BIO or IMCC for the Company to be selling the IMCC shares at the currently depressed share price and at volume levels."
ON BEHALF OF THE BIOME BOARD
Khurram Malik, Director,
Biome Grow Inc.
info@biomegrow.com
About Biome
Biome is a Canadian-based company that is in the midst of a restructuring process. It previously owned Highland Grow Inc., which is licensed to cultivate, process, and sell cannabis under the Cannabis Act (Canada). The primary asset of the company is common equity shares held in IM Cannabis Corporation, a publicly traded company on the NASDAQ stock exchange and Canadian Securities Exchange.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. Such forward-looking statements and information reflect management's current beliefs and are based on assumptions made by and information currently available to Biome
Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements speak only as of the date on which they are made, and Biome, or any of its subsidiaries undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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