True Leaf Brands Inc. (OTCMKTS:TRLFF) Provides Updates on Audited Financial Statements and Proposal to Exit Bankruptcy

True Leaf Brands Inc. (OTCMKTS:TRLFF) has provided an update regarding its restructuring strategy and biweekly status report as per the Management Cease Trade Orders (National Policy 12-203).

True Leaf’s stay of Proceedings expires

The company’s temporary halt of proceedings and that of its subsidiaries in all the restructuring proceedings expired on October 2, 2020. Before stay proceedings’ expiry, True Leaf, True Leaf investments Corp (TLI), and True Leafs Cannabis Inc. (TLC) had each filed its proposal to corresponding debtors with the Bankruptcy Superintendent’s Office. True Leaf files its proposal on October 1, 2020, while TLI filed on October 2, 2020, and TLC filed its proposal on September 23, 2020.

All the company’s creditors will receive the proposals for approval as per the Bankruptcy and Insolvency Act. Most importantly the companies are making the proposals according to the refinancing transaction with Lind Asset Management, Canguard Mortgage Investment Corp, The Australian Special Opportunity Fund, and associated acquisition entities according to the September 11, 2020, term sheet between parties. The proposals will permit the acquisition of all the companies’ assets and shares by Canguard Entities, thus allowing them to come out of the proposal proceedings.

True Leaf files MCTO

On September 15, 2020, True Leaf applied for temporary management cease trade order to the British Columbia Securities Commission as per NP 12-203. The company sought the MCTO regarding the delayed filing of its audited annual financial statements, officer’s certificates, and management analysis and discussion for the fiscal year ended March 31. True Leaf received the MCTO on September 16, 2020, and the company has been working with auditors to complete annual filings.

Besides what the company disclosed, it confirms that there hasn’t been any unrevealed material business changes since September 16, 2020, about the ongoing disclosure filings’ status. Also, True Leaf hasn’t failed to fulfill its set targets regarding meeting alternative information recommendations set in the NP 12-203. With the MCTO, True Leaf’s CFO and CEO are prohibited from trading in securities until they file Annual Filings.

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