Source: eve & Co
  • Eve & Co Incorporated (EVE) and its subsidiaries are applying for an order for creditor protection from the Ontario Superior Court of Justice
  • Eve & Co holds cultivation and processing cannabis licences for the production and sale of various cannabis products
  • Under the CCAA, a stay of proceedings received will allow the group to conduct a sale and investment solicitation process (SISP)
  • Eve & Co believes the CCAA will address its liquidity issues and stabilize operations
  • Eve Group executed a term sheet with Deans Knight Capital Management Ltd. for $2.2 million
  • Eve & Co Incorporated (EVE) is unchanged trading at $0.10 per share as of 3:56 p.m. ET

Eve & Co (EVE) and its subsidiaries have received approval to apply for an order for creditor protection from the Ontario Superior Court of Justice.

Eve & Co holds cultivation and processing cannabis licences for the production and sale of various cannabis products.

The company will be making its application to Court for the initial order today.

The directors of the companies determined it is in the best interests of the group and its stakeholders to file an application for creditor protection under the Companies’ Creditors Arrangement Act (CCAA).

The Eve Group is seeking protection under the CCAA to receive a stay of proceedings that will allow the group to conduct a sale and investment solicitation process (SISP). It will also facilitate a transaction that sees the company emerge from CCAA protection as a going concern.

Eve & Co believes the protection of the CCAA will be sufficient to allow the Eve Group to address its liquidity issues and stabilize operations.

If the initial order is granted, the company intends to operate in the ordinary course throughout the CCAA proceedings and while conducting the SISP. The Eve Group’s day-to-day obligations to employees and key suppliers of goods and services, from and after the filing date, will continue to be met.

In order to fund the CCAA proceedings, the SISP, and other short-term working capital requirements the Eve Group has executed a term sheet with Deans Knight Capital Management Ltd., on behalf of its clients (DIP Lender).

The DIP Lender will advance a debtor-in-possession loan for $2.2 million. The DIP Loan is conditional on the issuance of the initial order.

In addition to the above-mentioned, the company received resignation from Ravi Sood and Jeanette VanderMarel as directors of the company.

Eve & Co Incorporated (EVE) is unchanged trading at $0.10 per share as of 3:56 p.m. ET.

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