The Initial Order includes, among other things: (i) a stay of proceedings in favour of the Applicants for an initial 10-day period (the "Initial Period"), being the maximum stay period permitted under the CCAA for the Initial Order; (ii) approval of a debtor-in-possession financing facility (the "DIP Loan"); and (iii) the appointment of
The Applicants are commencing restructuring proceedings under the CCAA with the support of the Company's senior lender,
In addition, the Company and Love Child have also entered into an Asset Purchase Agreement with Pivot (the "Stalking Horse Agreement"), under which Pivot (on behalf of an entity to be incorporated) has agreed to serve as the "stalking horse bidder" in a Court-approved sale and investment solicitation process (the "SISP") in respect of the Love Child OrganicsTM business. The Stalking Horse Agreement establishes a minimum value in the SISP for the Love Child OrganicsTM business, which is comprised of all or substantially all of the assets of Love Child and certain assets of GreenSpace related thereto, and ensures the continued operation the Love Child OrganicsTM business. Subject to Court-approval, the SISP will allow interested parties the opportunity to submit superior bids and participate in any auction process conducted pursuant to the terms of the SISP. The Applicants intend to seek Court-approval of the SISP at the Comeback Hearing. Unless the successful bid at the conclusion of the SISP provides for significantly higher value than the Stalking Horse Agreement, there is not expected to be any recovery for holders of equity interests in the Company. Certain members of the Company's senior management team have an interest in the entity to be formed by Pivot, which will be the purchaser under the Stalking Horse Agreement if the Stalking Horse Agreement is declared the successful bid under the SISP.
The board of directors of GreenSpace made the decision to commence CCAA proceedings and pursue the SISP, with the support of Pivot, after careful review and consideration of viable alternatives, and upon consultation with the Company's professional advisors, having consideration for the Company's challenging financial circumstances and pending debt maturities, among other things. The decision follows on the strategic review previously announced in
Pursuant to the Initial Order, the Applicants will continue operations throughout the CCAA proceedings, including with respect to the Love Child OrganicsTM business. The Applicants' management will, under the oversight of the Monitor, remain responsible for the day-to-day operations of the Applicants.
The Comeback Hearing is scheduled for
The Initial Order also authorized the Company to incur no further expenses in relation to making continuous disclosure filings under securities legislation and policies. Detailed information regarding the Applicants and their restructuring efforts, including Court materials filed in the CCAA proceedings, will be made available on the Monitor's website, at: www.pwc.com/ca/greenspace.
Trading of the Company's shares will be suspended, and the Company will be transferred to the NEX board of the
ABOUT
GreenSpace is a North American organic and plant-based food business that develops, markets and sells premium food products to consumers within the fast-growing natural and organic food categories. GreenSpace owns LOVE CHILD ORGANICS, a producer of 100% organic food for infants and toddlers made with natural and nutritionally-rich ingredients.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:
This news release includes certain information and contains statements that may constitute "forward-looking information" and "forward-looking statements", respectively, under applicable securities law. Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan,", "goal", "believe", "project", "estimate", "expect", "strategy", "likely", "may", "should", "will", and similar references to future periods. Examples of forward-looking statements include, without limitation, statements regarding the Company's restructuring efforts, the ability of the Company to obtain approval of and implement the SISP, the ability of the Company to obtain all necessary approvals in order to complete any sale or other restructuring transaction identified as the successful bid in the SISP, the ability of the Company to operate during the CCAA proceedings, the continued operation of the Love Child Organics business, and the Company's intention to return to Court for the Comeback Hearing on
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