CBD Global Sciences Management Cease Trade Order (MCTO) Revoked by the Alberta Securities Commission

Rhea-AI Summary

CBD Global Sciences, Inc. (OTC: CBDNF) is facing a Cease Trade Order (CTO) from the Alberta Securities Commission, effective July 23, 2021, due to overdue financial filings for 2020. The issue arose after two of its subsidiaries filed for bankruptcy, impacting the completion of an essential audit. The company is working to finalize its audit by the end of July and anticipates resuming trading soon after. CEO Brad Wyatt expressed optimism about upcoming profitable operations post-COVID, despite the ongoing financial challenges.

Positive

• The company is working to complete its overdue audit by the end of July.
• Expectations to resume trading within 14 days after audit completion.
• CEO expresses optimism about future profitable operations.

Negative

• Cease Trade Order restricts trading until financials are filed.
• Two subsidiaries filed for Chapter 11, later converting to Chapter 7 bankruptcies.
• Financial issues stemming from aggressive landlord claims totaling over $550,000.

Denver, Colorado, July 27, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- CBD Global Sciences, Inc. (OTC: CBDNF) (CSE: CBDN) (Frankfurt:GS3), (“CBD Global” or the “Company”), 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.”

ABOUT CBD GLOBAL SCIENCES INC.

CBD Global Sciences, Inc., is a hemp-based CBD producer and branding investment vehicle which currently owns two brands, branded under the name Aethics™ (www.aethics.com) and CANNAOIL (www.cannaoilshop.com), which include CBD Oil tinctures (liquid products), CBD capsules, CBD topicals, Hydration products and Confectionary products.  CBD Global Sciences hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online.

CBD Global Sciences, through its wholly owned subsidiaries, Global Sciences Holdings and Legacy Distribution Group, (www.legacydistributiongroup.com), is delivering quality CBD products from multiple vendors of CBD infused products and non CBD products throughout the Colorado and Wyoming territories, currently servicing over 400 C-store and large box retailers with expansion plans to exceed 5,000 stores in the next 12-24 months. 

For further information, please contact Investor Relations, (888) 401-2239, info@cbdglobalsciences.com

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to future developments and the business and operations of the Corporation after the CSE listing.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals.  Readers should not place undue reliance on forward-looking statements.  The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FAQ

What caused CBD Global Sciences' Cease Trade Order?

The Cease Trade Order was issued due to overdue financial filings for 2020, which are currently being audited.

When does CBD Global Sciences expect to resume trading?

The company anticipates resuming trading within 14 days after completing its audit, expected by the end of July.

What financial struggles is CBD Global Sciences currently facing?

The company is dealing with financial issues due to two subsidiaries filing for bankruptcy and ongoing disputes with a landlord.

What is the impact of the bankruptcy on CBD Global Sciences?

The bankruptcy of its subsidiaries complicates financial reporting and has resulted in a Cease Trade Order, impacting share trading.

Who is the CEO of CBD Global Sciences?

The CEO is Brad Wyatt who has been addressing the current financial challenges.