Michigan Circuit Court Approves Order for the Appointment of Receiver over Pharmaco Assets
Red White & Bloom Brands (CSE: RWB) announced that the Michigan Circuit Court has approved a receivership order for its indirect subsidiary Pharmaco's assets. Trust Street Advisors, , through Gene R. Kohut, was appointed as receiver on December 26, 2024. The receivership follows continued defaults under Pharmaco's senior secured loan agreement.
Pharmaco, acquired by RWB in February 2022, operated medical and adult-use retail outlets and cultivation facilities in Michigan. The company's operations no longer align with RWB's core objectives. The receivership is expected to reduce operating expenses, working capital demands, and debt service obligations.
RWB's remaining operations, including Michigan distribution, continue unaffected. The company maintains focus on growth initiatives in Florida, including expanding medical retail presence and enhancing processing and cultivation facilities, while optimizing its Canadian operations.
Red White & Bloom Brands (CSE: RWB) ha annunciato che il Tribunale Circuitale del Michigan ha approvato un'ordinanza di amministrazione controllata per i beni della sua controllata indiretta Pharmaco. Trust Street Advisors, tramite Gene R. Kohut, è stato nominato curatore il 26 dicembre 2024. L'amministrazione controllata segue i continui inadempimenti in base all'accordo di prestito senior garantito di Pharmaco.
Pharmaco, acquisita da RWB nel febbraio 2022, gestiva punti vendita per uso medico e adulto e strutture di coltivazione in Michigan. Le operazioni dell'azienda non sono più allineate con gli obiettivi principali di RWB. Si prevede che l'amministrazione controllata riduca le spese operative, le esigenze di capitale circolante e le obbligazioni di servizio del debito.
Le operazioni rimanenti di RWB, inclusa la distribuzione in Michigan, continuano senza variazioni. L'azienda mantiene la propria attenzione su iniziative di crescita in Florida, inclusa l'espansione della presenza al dettaglio medico e il potenziamento delle strutture di lavorazione e coltivazione, ottimizzando nel contempo le proprie operazioni in Canada.
Red White & Bloom Brands (CSE: RWB) anunció que el Tribunal de Circuito de Michigan ha aprobado una orden de administración judicial para los activos de su subsidiaria indirecta Pharmaco. Trust Street Advisors, a través de Gene R. Kohut, fue designado como administrador el 26 de diciembre de 2024. La administración judicial sigue a los continuos incumplimientos bajo el acuerdo de préstamo asegurado senior de Pharmaco.
Pharmaco, adquirida por RWB en febrero de 2022, operaba puntos de venta para uso médico y adulto, así como instalaciones de cultivo en Michigan. Las operaciones de la compañía ya no se alinean con los objetivos principales de RWB. Se espera que la administración judicial reduzca los gastos operativos, las necesidades de capital de trabajo y las obligaciones de servicio de la deuda.
Las operaciones restantes de RWB, incluida la distribución en Michigan, continúan sin cambios. La compañía mantiene su enfoque en iniciativas de crecimiento en Florida, que incluyen la expansión de la presencia de venta al por menor médico y la mejora de las instalaciones de procesamiento y cultivo, mientras optimiza sus operaciones en Canadá.
레드 화이트 앤 블룸 브랜드 (CSE: RWB)는 미시간 서킷 법원이 자사의 간접 자회사인 파르마코의 자산에 대한 수탁 명령을 승인했다고 발표했습니다. Trust Street Advisors는 Gene R. Kohut을 통해 2024년 12월 26일 수탁자로 임명되었습니다. 수탁 명령은 파르마코의 고위 secured 대출 계약의 지속적인 불이행에 따른 것입니다.
2022년 2월 RWB에 인수된 파르마코는 미시간에서 의료 및 성인용 소매 outlets와 재배 시설을 운영했습니다. 회사의 운영은 더 이상 RWB의 주요 목표와 일치하지 않습니다. 수탁 명령은 운영 비용, 운영 자본 요구 사항 및 부채 상환 의무를 줄일 것으로 예상됩니다.
RWB의 나머지 운영, 미시간 유통을 포함하여, 영향을 받지 않고 계속됩니다. 회사는 플로리다에서의 성장 이니셔티브에 집중하고 있으며, 의료 소매 존재를 확장하고 가공 및 재배 시설을 강화하는 동시에 캐나다 운영을 최적화하고 있습니다.
Red White & Bloom Brands (CSE: RWB) a annoncé que le tribunal de circuit du Michigan a approuvé une ordonnance de mise sous séquestre pour les actifs de sa filiale indirecte Pharmaco. Trust Street Advisors, par l'intermédiaire de Gene R. Kohut, a été nommé séquestre le 26 décembre 2024. La mise sous séquestre fait suite à des défauts de paiement continus en vertu de l'accord de prêt senior garanti de Pharmaco.
Pharmaco, acquise par RWB en février 2022, exploitait des points de vente médicaux et pour adultes, ainsi que des installations de culture au Michigan. Les opérations de l'entreprise ne correspondent plus aux objectifs principaux de RWB. La mise sous séquestre devrait réduire les dépenses d'exploitation, les besoins en fonds de roulement et les obligations de remboursement de la dette.
Les opérations restantes de RWB, y compris la distribution au Michigan, se poursuivent sans changement. L'entreprise reste concentrée sur les initiatives de croissance en Floride, y compris l'expansion de la présence de vente au détail médical et l'amélioration des installations de traitement et de culture, tout en optimisant ses opérations au Canada.
Red White & Bloom Brands (CSE: RWB) gab bekannt, dass das Michigan Circuit Court einen Beschluss zur Bestellung eines Verwalters für die Vermögenswerte ihrer indirekten Tochtergesellschaft Pharmaco genehmigt hat. Trust Street Advisors, vertreten durch Gene R. Kohut, wurde am 26. Dezember 2024 als Verwalter eingesetzt. Die Bestellung des Verwalters folgt auf anhaltende Zahlungsverzüge im Rahmen des gesicherten Senior-Darlehensvertrags von Pharmaco.
Pharmaco, das im Februar 2022 von RWB übernommen wurde, betrieb medizinische und legale Einzelhandelsgeschäfte sowie Anbauanlagen in Michigan. Die Aktivitäten des Unternehmens entsprechen nicht mehr den Hauptzielen von RWB. Es wird erwartet, dass die Bestellung des Verwalters die Betriebskosten, den Kapitalbedarf und die Schuldenserviceverpflichtungen senkt.
Die verbleibenden Aktivitäten von RWB, einschließlich der Verteilung in Michigan, laufen unberührt weiter. Das Unternehmen konzentriert sich weiterhin auf Wachstumsinitiativen in Florida, zu denen die Erweiterung der medizinischen Einzelhandelspräsenz und die Verbesserung der Verarbeitungs- und Anbauanlagen gehören, während die kanadischen Operationen optimiert werden.
- Expected reduction in operating expenses and debt obligations through Pharmaco's receivership
- Core operations in Michigan distribution continue without disruption
- Ongoing expansion of medical retail footprint in Florida
- Subsidiary Pharmaco defaulted on senior secured loan agreement
- Loss of control over Pharmaco's retail and cultivation assets in Michigan
- Reduction in operational footprint in Michigan market
TORONTO, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE: RWB) (“RWB” or the “Company”) confirms that the senior secured lender to Pharmaco Inc. (“Pharmaco”), an indirect subsidiary of RWB, has submitted a stipulated order (the “Receivership Order”) to the Circuit Court in the City of Pontiac, County of Oakland, Michigan (the “Court”), requesting the appointment of a receiver (the “Receiver”) for all of the assets of Pharmaco. On December 26, 2024, the Honorable Circuit Court Judge Michael Warren appointed Trust Street Advisors, LLC, through its agent Gene R. Kohut, as Receiver for Pharmaco’s assets.
Pharmaco, which was acquired by a wholly owned subsidiary of RWB on February 7, 2022, has operated licensed medical and adult-use retail outlets, as well as conducted limited cultivation operations in the state of Michigan. However, Pharmaco’s operations no longer align with RWB’s core business objectives, as previously disclosed in the Company’s public filings. A receivership of this nature is expected to generate incremental savings by reducing operating expenses, working capital demands, and debt service obligations associated with Pharmaco’s operations.
The Company confirms that the remainder of its ongoing operations, including its Michigan distribution operations, continue to operate without disruption during the receivership. RWB remains committed to driving innovation and creating value within its distribution networks across the United States, actively executing growth initiatives in the state of Florida, including expanding its medical retail footprint and enhancing its processing and cultivation facilities, and continuing to optimize its recently acquired Canadian operations.
Background on the Receivership Order
The Receivership Order was issued following continued and uncured defaults under a senior secured loan agreement between Pharmaco and its senior secured lender. The Receivership Order, jointly submitted by Pharmaco and the senior secured lender, was approved by the Court. Under the Receivership Order, the Receiver is authorized to take full control of Pharmaco’s assets (the “Receivership Property”) and ensure their management and/or divestiture. The senior secured lender retains its senior lien position throughout the receivership process and is entitled to proceeds from any sale or may credit bid its secured claim in accordance with applicable Michigan law.
Pharmaco is required to cooperate with the Receiver to ensure orderly operations during the receivership. Select RWB management personnel may provide operational and management support to the Receiver as needed. The senior secured lender will fund the receivership costs, enabling the Receiver to maximize the value of the Receivership Property.
Advisors
The Dragich Law PLLC is legal counsel for the Receiver, while Plunkett Clooney serves as legal counsel for Pharmaco.
About Red White & Bloom Brands Inc.
Red White & Bloom Brands is a multi-jurisdictional cannabis operator and house of premium brands operating in the United States, Canada and select international jurisdictions. The Company is predominantly focusing its investments on major U.S. markets, including California, Florida, Missouri, Michigan, and Ohio in addition to Canadian and international markets.
Red White & Bloom Brands Inc.
Investor and Media Relations
Edoardo Mattei, CFO
IR@RedWhiteBloom.com
947-225-0503
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FAQ
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