TORONTO, Sept. 25,
2024 /CNW/ - Shiny Health & Wellness Corp.
("Shiny Health" or the "Company") (TSXV: SNYB)
today provides an update to its press release issued on
May 24, 2024 respecting the filing on
May 24, 2024, by its wholly-owned
subsidiary, Shiny Bud Inc. ("Shiny Bud"), of a Notice of
Intention to Make a Proposal ("NOI") pursuant to the
provisions of the Bankruptcy and Insolvency
Act (Canada). The
principal purpose of the NOI filing was to create a stabilized
environment for Shiny Bud and its financial advisors to run an
orderly and flexible sale, investment and solicitation process
("SISP") with the goal of identifying one or more interested
parties to acquire or make an investment in Shiny Bud's business or
all or some of its assets. B Riley Farber Inc. was appointed as the
trustee under the NOI (the "Proposal Trustee").
In connection with the filing of the NOI, Shiny Bud entered into
an agreement with its existing senior creditor, (the "DIP
Lender"), pursuant to which the DIP lender advanced a
debtor-in-possession loan ("DIP Loan") to Shiny Bud in the
amount of up to $580,000 to generally fund working
capital needs and expenses related to the NOI proceedings. The DIP
Loan and the SISP were approved by the Ontario Superior Court of
Justice (the "Court") on June 6,
2024 (the "June 6
Order").
Notwithstanding an unsuccessful SISP, effective September 20, 2024, pursuant to a subscription
agreement dated August 9, 2024,
between Shiny Bud and a related party of the DIP Lender, 1000973177
Ontario Limited (the "Purchaser"), and approved by the
Court, the Company issued 100 common shares to the Purchaser and
all other previously issued securities of Shiny Bud were cancelled
without consideration. The Purchaser is now the sole
securityholder of Shiny Bud.
In addition, on September 19,
2024, the Company assigned to the Purchaser its interest in
an intercompany loan owing by its distressed subsidiary, Shiny Bud,
for an initial amount which has been used to satisfy certain
government remittances owing by the Company and a possible
additional capped amount to be used for possible costs associated
with a restructuring or bankruptcy process or other general
maintenance fees of the Company.
Notwithstanding the disposition of Shiny Bud and its related
liabilities and the liquidation of its currently uncollectible
intercompany loan owing by Shiny Bud, the Company continues to be
without financial resources to carry on business or meet its
continuous disclosure obligations. Accordingly, the Company
continues to consider all possible strategic alternatives.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Shiny Health & Wellness Corp.