COLUMBUS, Ohio, Dec. 18, 2020 (GLOBE NEWSWIRE) — Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) (“GGB” or the “Company”) and certain of its direct and indirect wholly owned subsidiaries (collectively, the “Applicants”) today provided an update on their insolvency proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”).
As previously announced, the Applicants sought and were initially granted protection under the CCAA by the Ontario Superior Court of Justice (the “Court”) on May 20, 2020.
On December 18, 2020, the Court granted two orders that, among other things, (a) approved an amendment dated December 17, 2020 (the “DIP Amendment”) to the debtor-in-possession term sheet between the Company and All Js Greenspace LLC (“All Js”) dated May 19, 2020, as amended; and (b) extended the stay of proceedings under the CCAA until and including March 26, 2021.
A copy of the orders issued and entered by the Court, the DIP Amendment, and other Court materials and information related to the Applicants’ CCAA proceedings, all as may be updated or amended from time to time, are available on the website maintained by Ernst & Young Inc., in its capacity as the Court-appointed monitor (“Monitor”) of the Applicants, at www.ey.com/ca/ggbi. All inquiries about the CCAA proceedings should be directed to the Monitor. The Applicants intend to provide further updates on the CCAA proceedings when there are significant developments.
Approval of Transfer of Florida License
The Company previously announced the expiry of the forbearance period pursuant to the terms of the forbearance agreement with Green Ops Group LLC (“Green Ops”) and the subsequent commencement by Green Ops of the approval process from the State of Florida to transfer the cannabis license held by Spring Oaks Greenhouses, Inc. The transfer of the cannabis license to Green Ops was approved by the State of Florida on December 15, 2020.
Approval of Transfer of Nevada Licenses
The Company also announces today that it has received approval from the Cannabis Compliance Board (“CCB”) in Nevada to transfer the licenses held by the Nevada Organic Remedies LLC, Henderson Organic Remedies LLC, and Wellness Orchards of Nevada LLC as part of its previously announced and approved stalking-horse agreement among the Company, All Js and Capital Transfer Agency, ULC in its capacity as the debentureholder trustee of the Company’s (A) US$45,500,000 aggregate principal amount of 15.00% secured convertible debentures that matured May 17, 2020 and (B) US$23,717,000 aggregate principal amount of 5.00% secured convertible debentures maturing in 2024. The CCB’s approval is subject to payment by GGB of an agreed-upon penalty related to GGB’s creation and insertion of certain intermediary entities prior to formal approval by Nevada regulators.
About Green Growth Brands Inc.
Green Growth Brands maintains licenses for cannabis operations in Nevada, Massachusetts, and Florida. Its brands include CAMP, The+Source and 8Fold.
Forward Looking Information
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend”, “forecast” and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical and recreational marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the marijuana industry in the United States, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks, including those factors described under the heading “Risks Factors” in (i) the Company’s Annual Information Form dated November 26, 2018 which is available on the Company’s issuer profile on SEDAR and (ii) the Company’s Short Form Prospectus dated August 15, 2019.
Readers are cautioned that the foregoing list is not exhaustive. 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 contained in this release are made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
US Securities Law Disclaimer
This announcement does not constitute an offer, invitation or recommendation to subscribe for or purchase any securities and neither this announcement nor anything contained in it shall form the basis of any contract or commitment. In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal.
The securities referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act“) or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.
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Green Growth Brands Inc.