After failed efforts to find a deal to restructure its debts, cannabis multistate operator Slang Worldwide is entering receivership to dispose of its Colorado assets and filing for bankruptcy in Canada.
Toronto-based Slang said in a news release it might also sell the assets of its Vermont subsidiaries.
According to the release, Slang decided to wind down its operations after considering:
- The financial condition of the company and its subsidiaries.
- Its inability to pay its liabilities as they become due.
- Negotiations with its lenders.
Slang has a $17.3 million loan coming due as well as multiple smaller loans.
Its creditors include Florida-based MSO Trulieve Cannabis Corp. and New York-headquartered financiers Pura Vida Investments and Seventh Avenue Investments.
Slang reported a loss of 11.5 million Canadian dollars ($8.3 million) in the second quarter, compared with a loss of CA$5.16 million during the same period last year.
The company noted in its release that it expects that B. Riley Farber to be appointed trustee under the bankruptcy proceedings.
Slang describes itself as a “branded cannabis consumer packaged goods” company that has a portfolio of five brands and operates in 13 different legal cannabis markets.
Shares of the company trade as SLNG on the Canadian Securities Exchange and as as SLGWF on the over-the-counter markets.
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