Flower One Holdings Inc., together with its Canadian subsidiaries Flower One Corp. and FO Labour Management Ltd. (collectively, the “Canadian companies”), announced:
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The implementation of its plan of compromise, arrangement and reorganization presented to affected creditors pursuant to the Companies’ Creditors Arrangement Act (Canada) and a meeting order of the Supreme Court of British Columbia ( “Canadian Court”) granted on November 25, 2022, which plan was approved by the requisite majorities of affected creditors at a meeting on December 19, 2022 and sanctioned by the Canadian Court on December 21, 2022;
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The closing of the transactions contemplated by the plan, including a Canadian restructuring transaction pursuant to which the Canadian company has ceased to own any U.S. operating subsidiaries.
Affected creditors entitled to distributions pursuant to the plan will receive their respective distributions from PricewaterhouseCoopers Inc. in its capacity as the Canadian companies’ monitor under the Companies’ Creditors Arrangement Act, by no later than January 13, 2023. To the extent any affected creditor does not receive a distribution by January 13, 2023, it should notify the Canadian companies and monitor in accordance with the plan. Shareholders of Flower One will not receive any distributions under the plan in respect of their equity interests in Flower One.
Pursuant to the plan, the Canadian companies will each make an assignment into bankruptcy and, accordingly, Flower One will remain non-compliant with applicable Canadian securities laws and regulations. Flower One’s trading on the Canadian Securities Exchange (CSE) has been suspended and Flower One is expected to be de-listed from applicable stock exchanges.
Additionally, there is a related U.S. restructuring plan that was also executed, but is subject to Nevada’s Cannabis Compliance Board approval.
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Photo by Esteban Lopez on Unsplash
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