Green Growth Brands (CSE: GGB) announced last night after the bell that it has essentially lost its Florida assets, which comprise of Seven Oaks Greenhouses. The loss of the asset is the result of the company failing to uphold its portion of a forbearance agreement between into place with certain creditors, referred to as Green Ops Group.
The forbearance arrangement was put into place on May 20, with the purpose of the arrangement being that it enabled Green Growth Brands to have sufficient time to find a potential purchaser of its Florida assets, which were also subsequently marked as being collateral for the arrangement. With the company having filed for bankruptcy under the CCAA, the agreement enabled the company to have roughly one month before creditors enforced security on the assets.
The agreement stated specifically that Green Ops would not commence a foreclosure sale on the collateral assets, or accelerate amounts due under loan documents until June 15, 2020.
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With that date having passed with no transaction entered into, the company announced last night that it has received a letter indicating the enforcement of security on all secured obligations under the agreement. As a result, all obligations included under the agreement are immediately due and payable – meaning that the company has seen its creditors secure its assets in Florida.
Green Growth Brands last traded at $0.03 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.
