Heritage Cannabis’ Stock Plunges On Announcing Creditor Protection, Looks To Pursue Restructuring And Sales Process
Heritage Cannabis Holdings Corp. (CSE:CANN) (OTCQX:HERTF) announced on Tuesday that alongside its subsidiaries it sought and obtained an order for creditor protection from the Ontario Superior Court of Justice under the Companies Creditors Arrangement Act.
“The difficult but necessary decision to commence CCAA proceedings was made after careful consideration of the Company’s financial position while evaluating all available alternatives and engaging in significant consultation with legal and financial advisors,” the company said in a press release.
The Toronto-based cannabis producer also said that BJK Holdings Ltd., its senior secured lender, made a demand to the company for payment in full of certain indebtedness owing by the Heritage Group to the lender totaling $8,421,088.87.
Heritage has entered into binding agreements to sell its real estate properties in Ontario and British Columbia to BJK Developments Ltd. for a net purchase price of $9,714,475 and lease the Ontario and BC Property back from the purchaser in October.