VANCOUVER, British Columbia, May 12, 2022 (GLOBE NEWSWIRE) — BC Craft Supply Co. Ltd. (the “Company“) is pleased to announce that the British Columbia Supreme Court (the “Court“) approved the Company’s proposal to its creditors as amended (the “Proposal“) under the Bankruptcy and Insolvency Act (Canada) (“BIA”). On May 10, 2022, the Court granted an order (the “Approval Order”) approving the Proposal in accordance with its terms and the BIA.
The Proposal contemplates that the Company will pay each Affected Creditor (as defined in the Proposal) with a proven claim a cash distribution of 25 percent of its proven claim over eight equal quarterly tranches starting in June 2023 and ending in Q1 2025, with certain election options available to each Affected Creditor and the Company.
Each Claim of an Affected Creditor under the Proposal is subject to the following options:
a) By no later than June 1, 2023, which date may be extended by the written consent of the Proposal Trustee and the inspectors, either the Company or the Affected Creditor may elect to convert 50 percent of the aforesaid cash distribution to common shares of the Company at a deemed issue price of $0.50 a share, upon the commencement of the Company’s trading on the Canadian Securities Exchange; and
b) An Affected Creditor may elect to receive cash payment equaling 12.5 percent of their claim exercisable by the Company instead of being subject to the above equity option.
The cash distributions will be funded from sales revenues, however, the payment of cash distributions may be accelerated in the event the Company is successful in raising capital and able to fund the cash distributions sooner than anticipated.
“This is a momentous step forward for the Company, our stakeholders and the entire Canadian cannabis community. Craft cannabis has a rightful place in the Canadian market. The Proposal provides the best possible outcome for the Company’s stakeholders and the ability for the Company to scale its winning brands like Grizzlers, Role Model, and Earth Dragon Organics” said Matthew Watters, CEO. “We are thankful for the trust in our team and look forward to showcasing what we can do.”
The Company intends to implement the Proposal in accordance with its terms.
Information concerning the Company’s restructuring and the Proposal can be found on website of the proposal trustee, Crowe Mackay & Company Ltd. (the “Proposal Trustee“) at: https://www.crowemackayco.ca/engagements/recent-engagements. Any inquiries concerning the Proposal may be directed to the Proposal Trustee.
About BC Craft Supply Co. Ltd.
BC Craft Supply Co. Ltd. is a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. The Company offers a reimagined vision for craft markets through collaboration, expertise, and adaptation. Its operations include:
- CRFT a curator and aggregator of craft cannabis, providing advocacy and access for premium small-batch growers to Canada’s cannabis market;
- Feelwell Brands, a successful cannabinoid brand house licensed in the state of California; and
- AVA Pathways a pre-clinical biotech company focused on neuroplasticity and mental health applications using psilocybin and compounds derived from mushrooms.
BC Craft works with local artists cross-sector and remains fervently committed to keeping the art, technique, and purity of their pursuit.
Follow @BC_Craft on Twitter for the latest updates.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, but are not limited to, the anticipated closing the Private Placement.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political, and social uncertainties. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, CRFT assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
For further information:
Matthew Watters, CEO, and Director
Phone: (604) 687-2038.
BC Craft Supply Co. Ltd.
Suite 810 – 789 West Pender Street
Vancouver, British Columbia