True Leaf Brands Inc (CSE:MJ) (OTCPINK:TRLFF) (FRA:TLA) said Tuesday that it has obtained approval from the British Columbia Supreme Court to finalize its refinancing and restructuring process.
True Leaf recently struck a deal with financial backers Canguard Entities to sell its businesses, which include True Leaf Cannabis Inc, True Leaf Brands and True Leaf Investments Corp, after they emerge from their respective proposal proceedings.
In a statement, the Vernon, BC-based company said that the approval brings it closer to emerging from creditor protection.
READ: True Leaf Brands announces 'positive step forward' in its restructuring proceedings as creditors approve business proposals
The court approved a refinancing deal between Lind Asset Management XV LLC, The Australian Special Opportunity Fund LP, Canguard Mortgage Investment Corporation and its affiliates, as part of a term sheet signed on September 11.
In addition, it approved the sale of the shares of True Leaf Investments Ltd to Canguard’s acquisition company, as part of the transaction, the sale of True Leaf Cannabis to Canguard and its proposal to creditors, and True Leaf Investment’s proposal to creditors.
The application to approve True Leaf Brands' proposal to its creditors will be heard at a later date in conjunction with the application for the group’s plan of arrangement under the British Columbia Business Corporations Act, as part of its proposal to its creditors and the agreement reached with Canguard, True Leaf told shareholders.
True Leaf said it expects to close the transaction on or around November 16.
The company also said that there had not been any material changes to its business since its most recent news release. 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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