STRATHROY, ON, March 25,
2022 /CNW/ - Eve & Co Incorporated ("Eve &
Co" or the "Company") (TSXV: EVE) (OTCQX: EEVVF)
announces today that the Company and its subsidiaries, Natural
MedCo Ltd. ("NMC") and Eve & Co International Holdings
Ltd. ("Eve International" and together with Eve & Co and
NMC, the "Eve Group") have received the approval of their
directors to make an application for an order for creditor
protection (the "Initial Order") from the Ontario Superior
Court of Justice (Commercial List) (the "Court") under the
Companies' Creditors Arrangement Act (the "CCAA").
The Company will be making its application to Court for the Initial
Order on March 25, 2022.
After careful consideration of all available alternatives
following thorough consultation with legal and financial advisors,
the directors of the Eve Group determined that it is in the best
interests of the Eve Group and all of its stakeholders to file an
application for creditor protection under the CCAA.
The Initial Order being sought would include, among other
things: (i) a stay of proceedings in favour of the Eve Group; (ii)
approval of the DIP Loan (as described below); and (iii) the
appointment of BDO Canada Limited as monitor of the Eve Group (in
such capacity, the "Monitor"). The Eve Group is seeking
creditor protection under the CCAA in order to receive a stay of
proceedings that will allow the Eve Group to conduct a sale and
investment solicitation process ("SISP") and facilitate a
transaction that sees the company emerge from CCAA protection as a
going concern. The Company is confident that the protection
afforded by the CCAA will be sufficient to allow the Eve Group to
address its liquidity issues and stabilize operations.
If the Initial Order is granted, the Company intends to operate
in the ordinary course throughout the CCAA proceedings and while
conducting the SISP. Management of the Company would remain
responsible for the day-to-day operations of the Company, under the
general oversight of the Monitor. The Eve Group's day-to-day
obligations to employees and key suppliers of goods and services,
from and after the filing date, will continue to be met.
In order to fund the CCAA proceedings, the SISP and other short
term working capital requirements, the Eve Group has executed a
term sheet with Deans Knight Capital Management Ltd., on behalf of
its clients (the "DIP Lender"), pursuant to which the DIP
Lender will advance a debtor-in-possession loan in the amount of
$2,200,000 (the "DIP Loan").
The DIP Loan is conditional on, among other things, the issuance of
the Initial Order.
In addition to the foregoing, the Company received the
resignations of Ravi Sood and
Jeanette VanderMarel as directors of
Eve & Co on March 22, 2022 and
March 23, 2022,
respectively.
ABOUT EVE & CO
Eve & Co, through its wholly-owned subsidiary NMC, holds
cultivation and processing licences under the Cannabis
Act (Canada) for the
production and sale of various cannabis products, including dried
cannabis, cannabis plants and extraction of cannabis oil and has
received its European Union certificate of Good Manufacturing
Practice. NMC was Canada's first
female-founded licensed producer of medicinal marijuana and
received its cultivation licence from Health Canada in 2016. Eve
& Co is led by a team of agricultural experts and has a
licensed 1,000,000 square foot greenhouse located in Strathroy, Ontario.
The Company's website can be visited
at www.evecannabis.ca.
Notice regarding forward looking
statements:
Certain statements in this press release constitute
forward-looking information. All statements other than statements
of historical fact contained in this press release, including,
without limitation, those regarding the Company's expected use of
proceeds, opportunities for growth, future, strategy, plans,
objectives, goals and targets, and any statements preceded by,
followed by or that include the words "believe", "expect", "aim",
"intend", "plan", "continue", "will", "may", "would", "anticipate",
"estimate", "forecast", "predict", "project", "seek", "should" or
similar expressions or the negative thereof, are forward-looking
statements. These statements are not historical facts but instead
represent only the Company's expectations, estimates and
projections regarding future events. These statements are not
guarantees of future performance and involve assumptions, risks and
uncertainties that are difficult to predict, including those
described in the Company's management's discussion and analysis for
the three and six month periods ended June
30, 2021 which is available on the Company's SEDAR profile.
Therefore, actual results may differ materially from what is
expressed, implied or forecasted in such forward-looking
statements. The forward-looking information and forward-looking
statements included in this news release are made as of the date of
this news release. The Company does not undertake an obligation to
publicly update such forward-looking information or forward-looking
information to reflect new information, subsequent events or
otherwise unless required by applicable securities law.
SOURCE Eve & Co Incorporated