Plus Products Files for Creditor Protection Under the Companies’ Creditors Arrangement Act and Cancels September 14 Annual General Meeting
Plus Products Inc. has secured court protection from creditors under the Companies’ Creditors Arrangement Act (CCAA) to restructure its financial affairs. The Supreme Court of British Columbia granted an Initial Order allowing a stay of proceedings for 10 days, with PricewaterhouseCoopers Inc. appointed as Monitor. The company aims to continue operations and enhance its brand presence in the U.S. amid challenges in the California market. Trading of its shares has been halted pending delisting from the Canadian Securities Exchange.
- Court-ordered restructuring aims to stabilize finances.
- Continues to conduct operations and pay normal expenses.
- Trading of PLUS shares halted, anticipated delisting from the CSE.
- Challenges in the California market impacting competitiveness.
SAN MATEO, Calif., Sept. 13, 2021 (GLOBE NEWSWIRE) -- Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”) has secured court protection from its creditors under the Companies’ Creditors Arrangement Act, (“CCAA”), in order to restructure its business and financial affairs (the “Initial Order”). Its application under the CCAA was heard this morning by the Supreme Court of British Columbia (the “Court”). The Initial Order provides for a stay of proceedings in favor of PLUS for an initial period of 10 days, subject to such extensions as the Court may subsequently order, and the appointment of PricewaterhouseCoopers Inc. as Monitor in the CCAA proceedings.
In light of the initiation of CCAA proceedings, the Company has cancelled the Annual General Meeting previously scheduled for September 14, 2021.
After reviewing a number of options, PLUS’s Board of Directors determined that CCAA proceedings are in the Company’s best interests. The Company hopes to exit CCAA proceedings in a position to continue the success of its brand in the United States, and continue its mission to make cannabis safe and approachable.
Pursuant to the Initial Order, the Court has granted a stay of proceedings that will allow PLUS to, among other things:
- Continue to conduct operations and pay normal expenses in the ordinary course of business and in accordance with the Initial Order, and
- Facilitate the completion of the Board of Directors’ review of strategic alternatives, including the solicitation, development and execution of any potential sale or other strategic transaction involving PLUS, whether in addition to, or as an alternative to, a CCAA plan of compromise or arrangement.
“Over the last year, we have continued to build PLUS into one of the strongest brands in cannabis,” said Jake Heimark, co-founder and Chief Executive Officer. “However, the slow rollout of legal dispensary licenses in California, and the structure of the California market have made it difficult for independent brands to remain competitive in this state. We continue to believe the strongest brands will come out of California, and I am confident that the outcome of these proceedings will result in a business that matches the strength of our brand for our employees, debtholders and shareholders.”
While a comprehensive restructuring plan is being developed, PLUS will continue to deliver the same exceptional customer experiences and products across all its current markets. Business operations will not be interrupted.
Trading in PLUS common shares (the “Subordinate Voting Shares”) and listed on the Canadian Securities Exchange (the “CSE”) and the OTC Markets Group (the “OTCQX”) has been halted pending the anticipated delisting of the Subordinate Voting Shares and the Company’s securities from the CSE. A comeback hearing in respect of the relief granted pursuant to the Initial Order will be scheduled with the Court within ten days (the “Comeback Hearing”). Interested parties that wish to bring a motion at the Comeback Hearing are required to provide notice to the affected parties prior to the Comeback Hearing pursuant to the requirements as set forth in the Initial Order.
A copy of the Initial Order and other information will be available on the Court appointed Monitor’s website at https://www.pwc.com/ca/plusproducts.
About PLUS
PLUS is a cannabis and hemp food company focused on using nature to bring balance to consumers’ lives. PLUS’s mission is to make cannabis safe and approachable – that begins with high-quality products that deliver consistent consumer experiences. PLUS is headquartered in San Mateo, CA.
For further information contact:
Jake Heimark
CEO & Co-founder
ir@plusproducts.com
Investors:
Cole Stewart
Investor Relations
Cole@plusproducts.com
Tel +1 213.282.6987
Media:
Mattio Communications
Public Relations
plus@mattio.com
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements:
This press release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (each, a “forward-looking statement”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur, including but not limited to: whether or not the Court will provide extensions to the Initial Order and upon what terms; the ability of the Company to exit the CCAA proceedings in a position to continue the success of its brand in the United States and the ability, in such instance, of the Company to continue in its mission to make cannabis safe and approachable; the belief of the Company that the strongest cannabis brands will come out of California and the extent to which, if at all, the Company will emerge from the CCAA proceedings with a business that matches the strength of the Company’s brand; the extent to which the Company will continue to deliver the same level of customer service and products across all current markets and the extent to which, if at all, the business operations of the Company will not be interrupted while the Company pursues a comprehensive restructuring plan; and the timing of the expected Comeback Hearing.
These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the success of the Company’s investments, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of the Company’s products, customer experience and retention, the continued development of adult-use sales channels, managements estimation of consumer demand in in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete capital projects and facilities improvements, the ability to expand and maintain distribution capabilities, the impact of competition, the ability of the Company to implement initiatives and the possibility for changes in laws, rules, and regulations in the industry.
FAQ
What is Plus Products Inc.'s stock symbol?
What actions has Plus Products taken regarding creditors?
What is the duration of the stay of proceedings granted by the court?
Who has been appointed as Monitor in Plus Products' CCAA proceedings?
What does the restructuring hope to achieve for Plus Products?
