Plus Products applies for bankruptcy protection under company law and cancels the annual general meeting on September 14th
SAN MATEO, Calif., September 13, 2021 (GLOBE NEWSWIRE) – Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”) has sought legal protection from its creditors under the Companies. secured the Creditors Arrangement Act (“CCAA”) to restructure its business and financial affairs (the “Primary Order”). His application under the CCAA was heard this morning by the British Columbia Supreme Court (the “Court”). The initial order provides for a stay of proceedings in favor of PLUS for an initial period of 10 days, subject to extensions subsequently ordered by the court and the appointment of PricewaterhouseCoopers Inc. as monitor in the CCAA proceedings.
In view of the initiation of the CCAA proceedings, the company has canceled the Annual General Meeting originally scheduled for September 14, 2021.
After considering a number of options, PLUS ‘board of directors determined that the CCAA processes are in the best interests of the company. The company hopes to end the CCAA process in order to continue the success of its brand in the United States and to continue its mission to make cannabis safe and accessible.
According to the original order, the court granted a stay of the proceedings, which allows PLUS, among other things:
- continue to operate and pay normal expenses as part of the normal course of business and in accordance with the initial order; and
- Facilitating the completion of the Board of Directors’ review of strategic alternatives, including soliciting, developing and executing potential sales or other strategic transactions with PLUS, whether in addition to or as an alternative to a CCAA compromise or agreement plan.
Last year we continued to develop PLUS into one of the strongest cannabis brands. However, the slow adoption of legal pharmacy licenses in California and the structure of the California marketplace have made it difficult for independent brands to remain competitive in that state.
Jake Heimark, Co-Founder and Chief Executive Officer
We continue to believe that the strongest brands will emerge from California, and I am confident that the outcome of this trial will result in a business that matches the strength of our brand for our employees, debtors and shareholders.
While a comprehensive restructuring plan is developed, PLUS will continue to offer the same exceptional customer experiences and products in all current markets. Business operations are not interrupted.
Trading in PLUS common stock (the “Subordinated Voting Shares”) listed on the Canadian Securities Exchange (the “CSE”) and the OTC Markets Group (the “OTCQX”) has ceased pending the anticipated redemption of the Subordinated Voting Shares set and the company’s securities from the CSE. A comeback hearing in relation to the relief granted under the original order will be held in court within ten days (the “Comeback Hearing”). Interested parties wishing to propose to the comeback hearing must notify the affected parties prior to the comeback hearing in accordance with the requirements set out in the initial appointment.
A copy of the first ruling and other information will be available on the court-appointed monitor’s website at https://www.pwc.com/ca/plusproducts.
PLUS is a cannabis and hemp food company focused on using nature to balance consumer lives. PLUS’s mission is to make cannabis safe and accessible – it starts with high quality products that deliver consistent consumer experiences. PLUS is headquartered in San Mateo, California.
Original press release
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