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.