Red White & Bloom (CSE: RWB) (OTCQX: RWBYF), a multistate cannabis operator and house of premium brands, is providing a status report on the debt situation for Aleafia Health Inc. and certain of its affiliates. The report is regarding the Dec. 24, 2021, loan agreement, which was subsequently amended on several occasions and then assigned to Red White & Bloom on June 6, 2023, through a senior secured loan agreement. According to the announcement, Aleafia has received an order from the Ontario Superior Court of Justice approving, among other things, debtor-in-possession financing provided by RWB. That financing will fund the Companies’ Creditors Arrangement Act (“CCAA”) proceedings and other short-term working capital requirements outlined in the July 24, 2023, term sheet between RWB and Aleafia, in which Red White & Bloom agreed to advance $6,600,000 in debtor-in-possession (“DIP”) financing. The announcement noted that the continued availability of the DIP loan is conditional upon certain conditions being satisfied.
“As noted in the joint press release of RWB and Aleafia dated July 14, 2023, Aleafia was in breach of certain covenants under the Aleafia Senior Secured Loan Agreement, and the previously announced proposed transaction between the parties had been mutually terminated,” the announcement stated. “RWB did not waive any outstanding breaches and reserved all of its rights and remedies under the Aleafia Senior Secured Loan Agreement. RWB also provided a series of extensions and other accommodations under the Aleafia Senior Secured Loan Agreement. After the close of markets yesterday, in light of Aleafia’s financial position, RWB issued demand letters and notices to enforce security under Section 244 of the Bankruptcy and Insolvency Act and provided Aleafia with the aforementioned DIP loan to allow Aleafia to proceed with the Aleafia CCAA proceedings.”
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About Red White & Bloom Brands Inc.
Red White & Bloom is a multistate cannabis operator and house of premium brands in the U.S. legal cannabis sector. RWB is predominantly focusing its investments on the major U.S. markets, including Arizona, California, Florida, Massachusetts, Missouri and Michigan. For more information about the company, please visit www.RedWhiteBloom.com.
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