Pure Global Cannabis Inc.

Pure Global Cannabis Inc. has been under court-appointed receivership in the Ontario Superior Court of Justice (Commercial List) since May 1, 2020, when A. Farber & Partners Inc. was appointed receiver and manager under s. 243(1) of the Bankruptcy and Insolvency Act and s. 101 of the Courts of Justice Act, on the application of 2056706 Ontario Inc., Kozo Holdings Inc. and Cancor Debt Agency Inc. (court file CV-20-00638503-00CL). The receivership followed an Initial CCAA Order under which Ernst & Young Inc. acted as Monitor and which granted an Administration Charge of up to $200,000 and a DIP Lender's Charge to Hillmount Capital Inc., whose $1 million DIP loan was advanced in full before the Receivership Order. Secured claims include debentures held through Cancor with roughly $7.2 million of principal remaining after partial conversion to equity, from an original aggregate of $10 million maturing September 17, 2021, plus vendor-take-back and personal property security of $2.99 million registered by 2056706 against the 237A Property and $2.25 million registered by Kozo Holdings Inc. and Hadis Kozo against the 237B Property. As at the receiver's First Report of October 6, 2020, the full $500,000 authorized under the Receiver's Borrowing Charge had been borrowed from Kozo Holdings Inc. The proceeding remains active.