TORONTO--(BUSINESS WIRE)--DionyMed Brands Inc. (“DionyMed” or the “Company“) (CSE: DYME; OTCQB: DYMEF), a multi-state cannabis brands, direct-to-consumer and distribution platform, previously announced that GLAS USA LLC (“GLAS USA”), as administrative agent, and GLAS America LLC (“GLAS America”), as collateral agent, under the Company’s credit agreement dated January 16, 2019 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) provided the Company with notice of default under the Credit Agreement and demand for immediate payment of the amount of US$24,810,682.80 plus any additional interest, fees and expenses (the “Demand Notice”). GLAS America concurrently provided the Company with a Notice of Intention to Enforce Security under section 244 of the Bankruptcy and Insolvency Act (Canada) (the “BIA Notice”), which would entitle GLAS America to enforce its security over the Company and its assets after the expiry of a 10-day waiting period or earlier if the Company consented to an earlier enforcement.
The Company today announced that GLAS America has served the Company with a petition to the Supreme Court of British Columbia seeking the appointment of a receiver over all of the Company’s property and assets (the “Receivership Petition”). The Receivership Petition is tentatively scheduled to be heard on Tuesday, October 29, 2019.
The Company is reviewing and considering the Receivership Petition. It will continue to work co-operatively with its major lender towards reaching a restructuring solution for the business to continue operating as a going concern for the benefit of its stakeholders. At present, there can be no assurance as to what, if any, alternatives might be pursued by the Company and there can be no assurance that the Company will reach any solution with the Company’s lender, or as to the terms of any such solution, if achieved. Holders of the Company’s shares may face a loss of their investment as a result of a failure to reach a solution with the lender or as a result of a failure to reach a solution that includes holders of shares.
Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to concentrates and edibles. DionyMed serves cannabis consumers through direct-to-consumer fulfillment and retail dispensary distribution with its growing portfolio of award-winning brands. Learn more at dyme.com and follow @DYME_Inc on Twitter and LinkedIn.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.