CBD Global Issues Fourth Bi-Weekly Status Report Regarding Management Cease Trade OrderJuly 5, 2021
CBD Global Sciences Debt Restructuring and Impact of both Global NV and Strasburg Pharms Bankruptcies, Post Bankruptcy Action PlansAugust 12, 2021
CBD Global Sciences, Inc. acknowledges the Cease Trade Order (CTO) issued by the Alberta Securities Commission on 7/23/21.
This past Friday the Alberta Securities Commission revoked a MCTO and issued a CTO to the company ceasing all trading of the security until financials are filed for the year end 2020. The company has been diligently working to complete its year end audit for 2020 and Q1 reports that have been overdue since April of 2021. The complexity of the audit was exacerbated by the bankruptcies for two of the subordinate companies Global NV and Strasburg Pharms. The two companies filed for Chapter 11 bankruptcy protection in US Federal Court in March of 2021 and later converted them to Chapter 7 bankruptcies. The reason for seeking bankruptcy protection deals with the overly aggressive landlord seeking over $550,000.00 plus fees over a five-year lease of a facility that Global NV was leasing. The issues started when the building was sold to the current landlord and a sprinkler suppression issue was identified by the fire department, an issue that shut down our manufacturing of hemp and one that the owner of the building felt was not their responsibility to resolve. After many attempts to settle the claim out of court the landlord pressed for judgement forcing the company’s hand in seeking protection from the litigative action presented by the landlord.
The company projects to have the audit requirements met before the end of July and, following filing, expects to resume trading within the next 14 days. Once the audit is completed and submitted to the regulators, the CTO will be lifted, and trading will commence.
Brad Wyatt, CEO of CBD Global Sciences, shared, “This action to seek bankruptcy protection was complicated process but not insurmountable. Accounting for the write downs and properly assessing the impact to the PUBCO presented challenges to the team and the auditors, not to mention the complexity and delays incurred by the global pandemic. I am encouraged that the audit is close to completion. We are very excited to share with the investors our plans for post COVID operations, all of which will prove profitable and are already in motion.”