Another Canadian-listed cannabis issuer has filed for bankruptcy.
The latest filing comes from Slang Worldwide (CSE: SLNG), who operates in the US, where it distributes its products across thirteen states. The firm this morning filed an assignment into bankruptcy under the Bankruptcy and Insolvency Act.
The filing however comes as no surprise to investors, with the company earlier this month announcing a wind-down plan for the company and its assets with secured lenders. The plan, which was required following the firms inability to repay a credit agreement it entered into 2021, began with the disposition of its assets in Colorado by way of a receivership proceeding.
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After the disposition of the Colorado assets, the filing was made in Canada for bankruptcy. A possible sale of the firms Vermont subsidiaries and their assets may yet occur, which would be followed by an assignment to creditors of any remaining assets. That sale however is predicated on regulatory approval within the state of Vermont.
B. Riley Farber has been named as trustee of the company, however information on the bankruptcy has not yet been made public by the firm. As of June 30, Slang had liabilities of $44.6 million recorded on its balance sheet, versus assets of $22.8 million.
The equity has now been halted for trading on the Canadian Securities Exchange.
Information for this briefing was found via Sedar. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
