VANCOUVER, British Columbia., Jan. 27, 2022 (GLOBE NEWSWIRE) -- BC Craft Supply Co. Ltd., (CSE: CRFT) (“CRFT” or collectively, the “Company”), today announces that further to its news release of January 25, 2022, it has secured an interim financing facility (the “Interim Facility”) from Avro Capital Corp. (“Avro”) which was approved by the Supreme Court of British Columbia pursuant to the terms of a debtor-in-possession financing term sheet between the Company and Avro.
The Interim Facility is in the maximum principal amount of $415,000, which will be comprised of an initial advance of $215,000, with subsequent advances from time to time as agreed upon between the Company and Avro, in an amount not exceeding $200,000. The Interim Facility will finance the continuation of the Company’s operations and allow the Company to meet its obligations in the normal course of business as they become due. In addition, the Interim Facility will assist the Company in funding certain growth initiatives that the Company’s management believe will generate significant revenues through increased sales of products by its distribution partner and other possible channels.
The Interim Facility is secured by a priority Court-ordered charge in the maximum principal amount of $415,000, plus interest of 11.5% per annum, costs, fees and disbursements, ranking in priority to all other encumbrances on the Company’s assets, properties and undertakings, other than an administrative charge. The Interim Facility will mature and be fully repayable on the date that is six (6) months from the date of the first advance, which may be extended if Avro agrees to such extension.
Matt Watters, CEO of the Company stated, “We believe we have captured the most favorable financing arrangement presently available to the Company, that will sufficiently carry us through to the next steps of restructuring the Company and continuing as a viable business moving forward.”
The Company will continue to provide updates on the next steps of the proposal process under the BIA and the Interim Facility as and when they have been determined. Further information about the proceedings will be made available on the proposal trustee's website at https://www.crowemackayco.ca/.
About BC Craft Supply Co. Ltd.
BC Craft Supply Co. Ltd. is a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. The Company offers a reimagined vision for craft markets through collaboration, expertise, and adaptation. Its operations include:
- CRFT a curator and aggregator of craft cannabis, providing advocacy and access for premium small-batch growers to Canada’s cannabis market;
- Medcann Health Products - a cultivation and processing facility in Chemainus BC;
- Feelwell Brands, a successful cannabinoid brand house licensed in the state of California; and
- AVA Pathways a pre-clinical biotech company focused on neuroplasticity and mental health applications using psilocybin and compounds derived from mushrooms.
BC Craft works with local artists cross-sector and remains fervently committed to keeping the art, technique, and purity of their pursuit.
Follow @BC_Craft on Twitter for the latest updates.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, but are not limited to, the anticipated outcomes from securing the Interim Facility.
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. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law,
CRFT assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
For further information:
Matthew Watters, CEO, and Director
Phone: (604) 687-2038.
Email: info@bccraftsupplyco.com
BC Craft Supply Co. Ltd.
Suite 810 – 789 West Pender Street
Vancouver, British Columbia
V6C 1H2
