It appears that the entirety of Green Growth Brands (CSE: GGB) might come crashing down after all, and not just its CBD operation. This morning the company quietly announced that it had received a notice of default from MXY Holdings.
The notice of default is related to a US$5.0 million note issued by MXY last year while the proposed merger of the two parties was still on the table. While the note was extended to GGB Beauty LLC which is now being restructured, Green Growth as a whole issued a guaranty in connection with the note.
The note itself was due months ago on January 31, 2020, and the parties have not been able to meet an agreement on an extension. Green Growth also owes MXY $4.0 million in the form of a termination fee, which has now been accelerated as a result of the prior default.
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The company has indicated that it will continue to work towards reaching a refined agreement in relation to the funds owed. The ability of GGB to successfully negotiate altered terms is questionable however given that the company has already started the receivership process on a major business unit.
Green Growth last traded at $0.10 on the CSE.
Information for this briefing was found via Sedar and Green Growth Brands. 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.
