Considering the announcement that was made by the company yesterday, it could be a good time for investors to consider tracking the Heritage Cannabis Holdings Corp. (OTC:HERTF) stock this morning. The company announced yesterday that, along with its subsidiaries, it applied for and was awarded an order for credit protection by the Ontario Superior Court of Justice.
The credit protection order had been awarded in line with the provisions of the Companies’ Creditors Arrangement Act (CCAA). In the news release, Heritage Cannabis Holdings noted that the decision to commence the CCAA process was difficult but necessary and had been made after a thorough estimate of the financial situation of the company. Additionally, the company had also evaluated the possibility of alternatives and engaged in extensive discussions with the legal and financial advisors. BJK Holdings Ltd., the senior secured lender of Heritage Cannabis Holdings, made the demand for full payment of certain debts on April 1. The amount that had been demanded was $8421088.87, and that did not include the fees of BJK Holdings’ legal counsel.
The order that has been awarded to the company has several aspects. In the news release yesterday, the company enumerated those. First of all, it led to a stay on proceedings in favor of Heritage Cannabis Holdings and its subsidiary units. Secondly, it also entailed the appointment of KPMG Inc. as the monitor of the company.
The members of the board of directors would continue to be in charge, and the current management would continue to oversee the daily operations of Heritage Cannabis Holdings. However, the operations would be ultimately overseen by KPMG, the monitor. Eventually, the company would look to get approval for a sale and investment solicitation process, and further details with regards to the same would be provided by the company in due course.
