05:58:38 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



True Leaf Brands Inc
Symbol MJ
Shares Issued 100,412,099
Close 2020-04-01 C$ 0.035
Market Cap C$ 3,514,423
Recent Sedar Documents

True Leaf files NOI to propose bankruptcy

2020-04-02 09:27 ET - News Release

Mr. Darcy Bomford reports

TRUE LEAF ANNOUNCES FILING FOR STAY OF PROCEEDINGS ON CREDITORS

True Leaf Brands Inc., after careful consideration of all available alternatives, has commenced restructuring proceedings and is seeking creditor protection by filing a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada).

As previously announced by press release on March 23, 2020, True Leaf received a notice event of default, investigation of event of default and reservation of rights letter from Lind Asset Management XV LLC under the company's convertible security financing agreement dated Feb. 12, 2019, and under the waiver, amendment and financing supplement agreement dated Oct. 7, 2019. Lind Asset is managed by an alternative asset management firm, The Lind Partners LLC.

The NOI proceeding addresses the default notice by imposing a 30-day stay of proceedings that will protect True Leaf and its assets from the claims of creditors while it works to restructure its indebtedness and to evaluate its options to improve the financial health of the company and ensure its continuing success. This 30-day period may be extended with the authorization of the Supreme Court of British Columbia. True Leaf will issue a further press release on or before May 1, 2020, which is when the initial 30-day period expires, to provide an update.

As part of the NOI proceedings, FTI Consulting Canada Inc. has been appointed to act as the proposal trustee. The trustee's role in the NOI proceedings is to monitor and assist the company in its restructuring effort. Details of the NOI proceeding will soon be available on the trustee's website.

There can be no assurance that the restructuring effort will result in True Leaf securing any financing or realizing any value in the company's assets in any transaction or, if a transaction is proposed, that it will be successfully concluded in a timely manner or at all. Failure by True Leaf to successfully restructure its indebtedness through an approved proposal will result in the company becoming bankrupt.

At the current time, management and the board of directors are actively focusing on assisting the trustee to restructure the affairs of the company. Every effort will be made to ensure that all stakeholders in the company are kept informed of developments affecting the company as they occur.

Other corporate matters

The company has appointed Jennifer Pace, CPA, MBA, as acting chief financial officer. She succeeds Darren Battersby, who stepped down from the role effective April 1, 2020. Ms. Pace will report to True Leaf's chief executive officer, Darcy Bomford. Ms. Pace brings 18 years of senior-level financial operations experience to True Leaf, including experience in private and publicly traded companies in Canada and the United States.

About True Leaf Brands Inc.

True Leaf is a wellness company for both people and their pets. True Leaf Cannabis Inc., a division of True Leaf Brands, is a licensed producer and owns True Leaf Campus, an 18,000-square-foot facility located on a 40-acre site zoned for the cultivation, processing and sale of cannabis in Lumby, B.C.

We seek Safe Harbor.

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