Sunniva provides update on current financial position and the resignation of a board member
Sunniva Inc, announces that its wholly owned subsidiary, CP Logistics LLC, has secured a short term loan (the "Loan") in California for net proceeds of approximately USD$477,803 with a non-bank private lender as part of its ongoing efforts to manage current liquidity issues.
The Loan has a term of 12 months, bears an interest rate of 12%, and is secured against Sunniva's warehouse located in Long Beach, California.
"Similar to other companies in the cannabis industry, we are struggling to find capital raising opportunities to fund our ongoing expenses and debt obligations. This loan is one of the cash generating initiatives that we have been pursuing; however, our stakeholders should understand that as previously disclosed Sunniva continues to face significant business and financial challenges," said Dr. Anthony Holler, Chairman and CEO of Sunniva Inc.
"In California, we are involved in a dispute related to the Cathedral City Glasshouse where the owner and landlord is seeking to terminate our lease. While we are pursuing our legal rights under the lease and investigating options to deal with our significant liquidity issues, there can be no certainty of our ability to generate or raise the funds that we require or of our ultimate success in resolving our difficult challenges."
In addition, Luke Stanton, a board director, has resigned from the Sunniva Board of Directors effective February 19, 2020. Mr. Stanton will continue to work with Sunniva in a legal advisory capacity.
"On behalf of our board of directors, I thank Luke for his service and contributions to Sunniva and wish him well in all his future endeavors," stated Dr. Holler
Disclaimer: Past performance is not an indicator of future performance.
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