True Leaf Brands Inc (CSE:MJ) (OTCQX:TRLFF) said Thursday that the company has filed what’s called a Notice of Intention to Make a Proposal (NOI) under Canada’s the Bankruptcy and Insolvency Act in order to seek protection from creditors and begin restructuring.
The NOI imposes a 30-day stay on a default notice the cannabis-for-pets company received on March 23 from Lind Asset Management XV LLC, the firm managing its convertible security funding agreement. This shields True Leaf and its assets from creditors’ claims while it works to restructure its indebtedness and evaluate its options.
The 30-day period can be extended with authorization from the Supreme Court of British Columbia.
READ: True Leaf posts fiscal 3Q revenue of C$491,040 on strong response to plant-focused pet care products
As part of the proceedings, FTI Consulting Canada Inc has been appointed to act as True Leaf’s proposal trustee and will monitor and assist the company in its restructuring. The board and management team are actively focused on working with the trustee, the company said.
True Leaf noted that there is no assurance that the company will secure financing or realize value in its assets as part of a transaction, and, if a transaction is proposed, that it will be completed in a timely manner or at all.
Established in 2015, True Leaf is one of the first companies to market hemp-based products for pets worldwide.
True Leaf has also appointed Jennifer Pace as acting chief financial officer. Pace replaces Darren Battersby, who resigned effective April 1.
Pace brings nearly two decades of senior-level financial operations experience at both private and public companies in Canada and the US.
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