Illumination Brands Announces the Plan to Distribute or Sell Shares of LTNC After Selling One of Its Subsidiaries, Illumination Holdings Inc.
Illumination Brands, formerly CBD Global Sciences Inc. (CBDN), announces plans to pay off creditors and potentially distribute remaining shares/funds to shareholders after selling its subsidiary, Illumination Holdings Inc., to Labor Smart (LTNC) for 750 million LTNC shares. CBDN was delisted from the Canadian Securities Exchange on December 5, 2023, following a Cease Trade Order since July 7, 2022. The company faced significant cash flow challenges despite attempts to shift focus from CBD to more profitable sectors.
Once LTNC shares are eligible for resale under Rule 144, CBDN plans to use them to settle debts and potentially distribute remaining assets to shareholders. The estimated distribution is 6-8 LTNC shares per CBDN share, subject to final creditor settlements. However, the company cautions that there is no assurance regarding the timing or ability to sell/distribute LTNC shares, repay creditors, or return capital to shareholders due to potential regulatory, legal, or compliance issues.
Illumination Brands, precedentemente nota come CBD Global Sciences Inc. (CBDN), annuncia piani per saldare i creditori e potenzialmente distribuire le azioni/fondi rimanenti agli azionisti dopo la vendita della sua controllata, Illumination Holdings Inc., a Labor Smart (LTNC) per 750 milioni di azioni LTNC. CBDN è stata dequotata dalla Canadian Securities Exchange il 5 dicembre 2023, dopo un Ordine di Sospensione delle Transazioni emesso il 7 luglio 2022. L'azienda ha affrontato notevoli sfide di flusso di cassa nonostante i tentativi di spostare l'attenzione dal CBD a settori più redditizi.
Una volta che le azioni LTNC saranno idonee per la rivendita ai sensi della Regola 144, CBDN prevede di utilizzarle per saldare i debiti e potenzialmente distribuire gli attivi rimanenti agli azionisti. La distribuzione stimata è di 6-8 azioni LTNC per ogni azione CBDN, soggetto ai definitivi accordi con i creditori. Tuttavia, l'azienda avverte che non c'è alcuna garanzia riguardo ai tempi o alla capacità di vendere/distribuire le azioni LTNC, rimborsare i creditori o restituire il capitale agli azionisti a causa di potenziali questioni normative, legali o di conformità.
Illumination Brands, anteriormente conocida como CBD Global Sciences Inc. (CBDN), anuncia planes para saldar a los acreedores y potencialmente distribuir las acciones/fondos restantes a los accionistas tras la venta de su filial, Illumination Holdings Inc., a Labor Smart (LTNC) por 750 millones de acciones LTNC. CBDN fue eliminada de la Canadian Securities Exchange el 5 de diciembre de 2023, tras una Orden de Suspensión de Comercio desde el 7 de julio de 2022. La empresa enfrentó importantes desafíos de flujo de efectivo a pesar de los intentos de cambiar su enfoque del CBD a sectores más rentables.
Una vez que las acciones de LTNC sean elegibles para la reventa bajo la Regla 144, CBDN planea usarlas para liquidar deudas y potencialmente distribuir activos restantes a los accionistas. La distribución estimada es de 6-8 acciones de LTNC por cada acción de CBDN, sujeta a acuerdos finales con los acreedores. Sin embargo, la empresa advierte que no hay garantía respecto al momento ni a la capacidad de vender/distribuir acciones de LTNC, pagar a los acreedores o devolver capital a los accionistas debido a posibles cuestiones regulatorias, legales o de cumplimiento.
Illumination Brands, 이전에 CBD Global Sciences Inc. (CBDN)로 알려졌던 회사가, 자회사 Illumination Holdings Inc.를 Labor Smart (LTNC)에 7억 5천만 LTNC 주식에 매각한 후, 채권자에게 상환하고 잔여 주식/기금을 주주에게 배분할 계획을 발표했습니다. CBDN은 2023년 12월 5일 캐나다 증권 거래소에서 상장 폐지되었으며, 이는 2022년 7월 7일부터 발효된 거래 중지 명령에 따른 것입니다. 이 회사는 CBD에서 더 수익성이 높은 분야로 초점을 전환하려는 시도에도 불구하고 상당한 현금 흐름 문제에 직면했습니다.
LTNC 주식이 규칙 144에 따라 재판매 가능해지면, CBDN은 이를 사용하여 채무를 정산하고 잔여 자산을 주주에게 배분할 계획입니다. 예상 배분은 각 CBDN 주식당 6-8 LTNC 주식이며, 최종 채권자 합의에 따라 다릅니다. 그러나 회사는 LTNC 주식을 판매/배포하거나 채권자에게 상환하거나 주주에게 자본을 반환하는 시간과 능력에 대한 보장이 없다고 경고했습니다. 이는 잠재적인 규제, 법적 또는 준수 문제 때문입니다.
Illumination Brands, anciennement connue sous le nom de CBD Global Sciences Inc. (CBDN), annonce des plans pour rembourser les créanciers et potentiellement distribuer les actions/fonds restants aux actionnaires après avoir vendu sa filiale, Illumination Holdings Inc., à Labor Smart (LTNC) pour 750 millions d'actions LTNC. CBDN a été radiée de la Canadian Securities Exchange le 5 décembre 2023, après un Ordre d'Interdiction de Négociation depuis le 7 juillet 2022. L'entreprise a rencontré d'importants défis de flux de trésorerie malgré ses tentatives de réorienter son activité du CBD vers des secteurs plus rentables.
Une fois que les actions LTNC seront éligibles à la revente en vertu de la Règle 144, CBDN prévoit de les utiliser pour régler des dettes et potentiellement distribuer les actifs restants aux actionnaires. La distribution estimée est de 6 à 8 actions LTNC par action CBDN, sous réserve des règlements finaux avec les créanciers. Cependant, l'entreprise met en garde qu'il n'y a aucune garantie quant au moment ou à la capacité de vendre/distribuer les actions LTNC, de rembourser les créanciers ou de retourner le capital aux actionnaires en raison de problèmes réglementaires, juridiques ou de conformité potentiels.
Illumination Brands, ehemals bekannt als CBD Global Sciences Inc. (CBDN), kündigt Pläne an, Gläubiger zu begleichen und möglicherweise verbleibende Aktien/Mittel an die Aktionäre zu verteilen, nachdem die Tochtergesellschaft Illumination Holdings Inc. an Labor Smart (LTNC) für 750 Millionen LTNC-Aktien verkauft wurde. CBDN wurde am 5. Dezember 2023 von der Canadian Securities Exchange delisted, nachdem seit dem 7. Juli 2022 eine Handelsstoppanordnung erlassen wurde. Das Unternehmen sah sich trotz Versuchen, den Fokus von CBD auf profitablere Sektoren zu verlagern, erheblichen Liquiditätsproblemen gegenüber.
Sobald LTNC-Aktien gemäß Regel 144 zum Wiederverkauf berechtigt sind, plant CBDN, diese zur Begleichung von Schulden zu verwenden und möglicherweise verbleibende Vermögenswerte an die Aktionäre zu verteilen. Die geschätzte Verteilung beträgt 6-8 LTNC-Aktien pro CBDN-Aktie, vorbehaltlich abschließender Gläubigervereinbarungen. Das Unternehmen warnt jedoch, dass es keine Garantie für den Zeitpunkt oder die Fähigkeit gibt, LTNC-Aktien zu verkaufen/zu verteilen, Gläubiger zu begleichen oder Kapital an die Aktionäre zurückzugeben, aufgrund möglicher regulatorischer, rechtlicher oder compliancebedingter Probleme.
- Sale of subsidiary Illumination Holdings Inc. to Labor Smart (LTNC) for 750 million LTNC shares
- Potential debt repayment and return of capital to shareholders
- Estimated distribution of 6-8 LTNC shares per CBDN share
- Delisted from Canadian Securities Exchange on December 5, 2023
- Under Cease Trade Order since July 7, 2022
- Significant cash flow challenges and accumulated debt
- Unsuccessful attempts to lift Cease Trade Order and resume trading
- Uncertainty regarding ability to sell/distribute LTNC shares and repay creditors
DENVER, Colo., Oct. 13, 2024 (GLOBE NEWSWIRE) -- Illumination Brands, formerly known as CBD Global Sciences Inc. (“CBDN”); (the "Company"), announces its proposed plans to pay off all secured and unsecured creditors of CBDN, with any remaining shares/funds distributed as a return of capital to shareholders proportionately, as of the record date of such event. CBDN was delisted from trading on the Canadian Securities Exchange (“CSE”) on December 5, 2023. The Company had been under a Cease Trade Order (“CTO”) since July 7, 2022, and has not traded for over two years. Despite its attempt to shift its focus away from the CBD industry and into more profitable sectors, CBDN has continued to face significant cash flow challenges.
Efforts to lift the CTO consumed hundreds of thousands of dollars and countless hours, yet CBDN was ultimately unable to resume trading, leading to its delisting in 2023. Since the date that CBDN acquired the assets and designated liabilities of NABC – a company acquired out of the bankruptcy of New Age -. CBDN amassed debt while attempting to present a successful turnaround to an operation that had not been profitable in the many years leading up to the sale of the operation. In an effort to turn around operations, CBDN sought to sell assets after realizing it was unable to raise the necessary funds to continue its efforts and had limited options.
In August 2024, CBDN sold its subsidiary, Illumination Holdings, which included Legacy Distribution Group, to Labor Smart (OTCMKTS: LTNC - “LTNC”) in exchange for 750 million shares of LTNC. This acquisition provided the capital necessary to keep the subsidiary funded in order to continue the operation turnaround and aim for profitability in the beverage and snack distribution sector.
CBDN plans to hold the LTNC shares until they are eligible for resale or issuance under Rule 144 of the Securities Act of 1933.
Once the LTNC shares are eligible for sale or issuance, the Company plans to use some of the shares or proceeds from the sale of the shares to pay off all secured and unsecured creditors of CBDN, with any remaining funds/shares distributed as a return of capital or shares to shareholders proportionately, as of the record date of such event. For planning purposes only, if done as a share distribution, CBDN anticipates the share calculation to be between six to eight LTNC shares for every one share of CBDN, this estimate is dependent on the final settlement with the creditors of CBDN. The transfer agency, Capital Transfer, located in Ontario, Canada, is expected to be engaged to manage the record of shares and the return of capital or shares to shareholders once the LTNC shares are sold or distributed. However, there can be no assurance as to the timing of the distribution of the LTNC shares and there may in fact be no ability for CBDN to sell or distribute the LTNC shares, repay its creditors, or return any capital to its shareholders subject to regulatory, legal or compliance issues that may exist now or in the future.
For further information, please contact Brad Wyatt, CEO, (720-881-2541) or email at info@illuminationbrands.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. 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 is Illumination Brands' plan for the LTNC shares received from selling Illumination Holdings Inc.?
When was CBDNF delisted from the Canadian Securities Exchange?
How many LTNC shares did Illumination Brands receive for selling Illumination Holdings Inc.?
What is the estimated share distribution ratio for CBDNF shareholders?
