Canadian court OKs sale process for US marijuana firm Green Growth

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Beleaguered multistate cannabis retailer Green Growth Brands’ sale and investment solicitation process (SISP) was approved by a Canadian court.

Green Growth Brands is based in Columbus, Ohio, but court filings show its parent company is registered in Ontario.

The company announced an initial creditor protection order from the Ontario Superior Court of Justice on May 20.

That protection order was extended on May 29. It was extended again, on Tuesday, until Aug. 15.

The court also approved a stalking horse agreement between Green Growth Brands and its debtor-in-possession lender, All Js Greenspace.

That process is expected to be complete by the end of August, according to a news release.

Court filings show Green Growth Brands had more than $100 million in secured debt as of late May with “very limited cash on hand,” and relies on All Js Greenspace for financing.

The company placed its American CBD business into receivership in early April, shortly after former CEO Peter Horvath stepped down.

Green Growth Brands divested from its CBD business to focus on its marijuana operations in Florida, Massachusetts and Nevada.

The deadline for delivering nonbinding letters of interest for the SISP is 5 p.m. ET on July 6.

Documents related to the case are available online from restructuring monitor Ernst & Young.

Green Growth Brands trades on the Canadian Securities Exchange as GGB and on the U.S. over-the-counter markets as GGBXF.