True Leaf Brands Inc (CSE:MJ) (OTCPINK:TRLFF) (FRA:TLA) announced Friday positive news concerning the firm’s restructuring process - its creditors had unanimously approved True Leaf’s proposals.
The approvals allow True Leaf’s businesses, which include True Leaf Cannabis Inc, True Leaf Brands and True Leaf Investments Corp, to emerge from their respective proposal proceedings so that financial backers Canguard Entities can acquire the assets and shares of the companies.
"This is a positive step forward and we are pleased with the solid vote of confidence from the creditors and our new financial backers at Canguard," interim CEO Darcy Bomford told investors in a statement.
READ: True Leaf Brands and its subsidiaries file plans with creditors; working with British Columbia Securities Commission
"This will allow the company to exit creditor protection and emerge from a challenging 2020 with a new team and solid strategy for success in the evolving cannabis industry."
The proposals were put forth after a refinancing deal between Lind Asset Management XV LLC, The Australian Special Opportunity Fund LP, Canguard Mortgage Investment Corporation and its affiliates pursuant on September 11.
In November, True Leaf will submit applications to the British Columbia Supreme Court for orders approving each of the proposals. Following the anticipated approvals, True Leaf told shareholders that the parties will work towards closing the transaction and implementing the proposals.
The Vancouver-based company also said that there had not been any material changes to its business since its most recent news release on October 5. True Leaf is required to provide bi-weekly default status reports as part of a temporary management cease trade order in place.
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