Cannabis company Lotus Ventures Inc. LTTSF J confirmed Monday that it has finalized a significant financial transaction. The Vancouver, Canada-based business sold 1,000 common shares to a purchaser, 5008679 Ontario Limited, for about CA$2.54 million ($1.87 million). Before this deal, the purchaser only owned about 6% of the company’s shares.
Under the deal, all other existing shares of Lotus were canceled, meaning the purchaser now owns 100% of the company. Consequently, Lotus was removed (delisted) from the Canadian Stock Exchange (CSE) and the OTC Markets on August 20, 2024. The company also plans to request the removal of a cease trade order that was issued earlier this year and will cease to be a publicly reporting company in Alberta, British Columbia and Ontario.
Money Issues
In January, the company filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act concerning a certain loan. Since December, it has been evident that the company had money troubles, writes Green Market Report's Debra Borchardt. At the time, the company issued a statement confirming limited working capital.
"To reduce the working capital deficit, the company has negotiated a reduction of approximately $628K of its debt by issuing 25,141,640 shares at $0.025 per share with warrants at $0.05 per share expiring December 5, 2028," the company stated at the time. It also clarified that the amounts were in Canadian dollars.
The money troubles seem to have begun even earlier, with its earnings report for the fiscal year 2022 ending August 31, 2022, revealing revenue of CA$1.69 million ($1.25 million) in fiscal year, a 69% decrease compared to CA$5.48 million in the fiscal year 2021. The net loss at the time amounted to CA$4.79 million, compared to income of CA$241,097 in the prior year.
Read Next:
Photo: Courtesy of Artem Avetisyan via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.