VANCOUVER, British Columbia, Feb. 14, 2022 (GLOBE NEWSWIRE) -- Sunniva Inc. (“Sunniva”, the “Company”) (CSE:SNN) (OTC Pink Sheets:SNNVF) announced today that its wholly-owned subsidiary, CP Logistics, LLC (“CPL”), closed a non-brokered private placement of secured promissory notes (the “Notes”) on February 10, 2022, for aggregate proceeds of US$700,000. The Notes bear interest at a rate of 20% per annum, mature on January 31, 2026, and are secured against all of the assets of CPL. If the Arbitration (as defined below) results in a monetary award, holders of the Notes shall be entitled to be repaid in respect of the Notes from such monetary award. The proceeds from the Notes will be used to fund ongoing costs associated with the Arbitration and for general working capital purposes.
CPL continues to be engaged in arbitration with the current owner and landlord of the California glasshouse, Bobs LLC, in regards to CPL’s rights as tenant under an October 20, 2017 Conditional Build to Suit Lease and a March 2018 Subordinated Non-Disturbance and Attornment Agreement (the “Arbitration”). The Arbitration is being administered by JAMS Arbitration. The parties have agreed upon an arbitration hearing commencement date of June 1, 2022. The hearing is scheduled to proceed for 8 consecutive business days.
Separately from the CPL Financing, Sunniva has applied to the relevant securities commissions for a partial revocation of the cease trade order applicable to securities of the Company issued on June 22, 2020, for failure to file certain financial documents (the “Cease Trade Order”) to permit a private placement financing of the Company to raise sufficient funds to cover certain of the Company’s expenses, including expenses in connection with the audit of the Company’s financial statements, in compliance with applicable securities laws. There is no certainty that the securities commissions will grant such an order. Trading of the Company’s shares will continue to be suspended until the Cease Trade Order has been fully revoked.
Cautionary Note Regarding Forward-Looking Information or Statements
This press release contains forward-looking information or statements. All statements that are, or information which is, not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, the application for a partial revocation of the Cease Trade Order to permit a private placement financing, and CPL’s ongoing arbitration with Bobs LLC, are “forward-looking information or statements”. Forward-looking information or statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. With respect to forward-looking information and statements contained herein, Sunniva has made numerous assumptions including, among other things, assumptions about general business and economic conditions. Such forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking information or statements. Such risks and uncertainties include, among others, the risk factors included in the Sunniva’s continuous disclosure documents available on www.sedar.com. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking information or statements. Although Sunniva has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking information or statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking information or statements. Sunniva assumes no obligation to update any forward-looking information or statements, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.
Dr. Anthony Holler
Chairman and Chief Executive Officer
Phone: (866) 786-6482
Released February 14, 2022