WINCHESTER, Ky.--(BUSINESS WIRE)--GenCanna Global USA, Inc. (“GCG” or the “Company”) today announced that it has received approval from the United States Bankruptcy Court for the Eastern District of Kentucky to sell substantially all of its assets to funds managed by its long-term investor, MGG Investment Group (“MGG”).
This transaction will enable GenCanna to maintain its operations in Kentucky as a leading standalone CBD and wellness business with significantly reduced debt and substantial new capital to pursue growth opportunities. In conjunction with the completion of the sale to MGG, GenCanna has appointed veteran executive Andrew Barnett as Chief Executive Officer, effective immediately.
“I am pleased to join GenCanna at this critical time in its evolution and look forward to stewarding the Company into its next chapter,” said Mr. Barnett. “GenCanna’s industry-leading technology and deep customer focus will enable it to continue to deliver great products, especially at a time when consumers are increasingly aware of and incorporating high-quality CBD into their health and wellness routines. Today, GenCanna is a stronger, better capitalized, and more competitive company that is poised to further its leadership position in the still emerging hemp industry.”
“GenCanna is a proud Kentucky-bred business and has a bright future under Andrew’s leadership,” said Matty Mangone Miranda, Founder of GenCanna, who will continue to serve as an advisor to the Company. “Importantly, I would like to thank GCG’s employees, vendors, partners and farmers, as well as MGG, for their support throughout this process.”
Mr. Barnett has spent his career overseeing the strategic, operational and financial needs of private and publicly held companies, from start-up to mature enterprises, in healthcare and wellness, retail, manufacturing, and distribution. He has served in various C-suite roles as well as a consultant to operating company management, lenders and investors. Mr. Barnett holds a BBA from Emory University and attended the New York University Stern School of Business.
Huron Consulting Services LLC has served as operational advisor, Jefferies LLC has served as financial advisor, and Benesch Friedlander Coplan & Aronoff LLP along with Dentons Bingham Greenebaum LLP have served as the Company’s legal counsel.
ABOUT GENCANNA GLOBAL, INC.
GenCanna is a vertically integrated agriculture-technology company specializing in the production of hemp rich in CBD. Committed to helping farmers farm, the GenCanna Certified Farming Network ensures a compliant, consistent supply of hemp-derived products grown on accredited U.S. family farms. GenCanna’s seed-to-shelf chain of custody is built with the industry's strictest compliance standards (BRC, cGMP) and links the farmers directly to the finished goods.
Founded in 2014, as an inaugural member of the Kentucky Department of Agriculture's Industrial Hemp Pilot Program, the company is a longstanding industry pioneer. GenCanna works closely with state universities, consumer protection agencies, and other regulatory bodies driving key industry standards and legislation. Consistent extraction methods and innovative processing technologies ensure GenCanna production processes exceed all regulatory standards for FDA registered and inspected food production facilities (learn more at https://gencanna.com/compliance/). The GenCanna Production Platform™ assures standardized, repeatable quality from farm to finished product.
GenCanna is a founding board member of the U.S. Hemp Roundtable. Launched in early 2017, the U.S. Hemp Roundtable is a coalition of over 70 hemp companies – representing every link of the product chain, from seed to sale – and all of the industry’s major national grassroots organizations. The U.S. Hemp Roundtable has secured the passage of bipartisan legislation in the U.S. Congress that established hemp federally as an agricultural commodity, permanently removing it from regulation as a controlled substance.
ABOUT MGG INVESTMENT GROUP LP
Founded in 2014, MGG Investment Group is a private direct lending investment firm that provides bespoke financing solutions to mid-size and growing lower-middle market companies. MGG works with owners and management teams to help build lasting value, address immediate needs, and solve complex situations while generating attractive risk-adjusted returns for investors irrespective of and through market cycles. For more information, visit www.mgginv.com.