The company currently faces legal disputes with debt holders
Sunniva Inc announced today it is taking steps to preserve its available funds to allow it to actively pursue its rights under the previously disclosed dispute related to the Build to Suit Lease of the Cathedral City Glasshouse and to deal with disputes with certain of its debt holders for due, and claimed due, debt.
As part of these cost-saving measures, the Company is reducing its business activities in California relating to both the extraction facility in Cathedral City and the distribution facility in Coachella while seeking opportunities to monetize both, and is actively pursuing the sale of the Long Beach warehouse.
In addition, the Company continues to work towards the closing of the sales of its Canadian assets under the Natural Health Services Ltd. and Sunniva Medical Inc. transactions.
While the Company believes that it has strong legal positions with respect to the announced disputes and is taking steps to exert its position, there can be no certainty that the Company will ultimately prevail or that it will be able to deal with all of its debt as it becomes due.
"The lease on the Cathedral City Glasshouse is Sunniva's primary asset and we intend to pursue all available options to resolve these disputes. Dr. Anthony Holler, CEO of Sunniva.
To cover construction cost overruns, Sunniva has invested $23 million into the Glasshouse, much of it under protest, as it was the only way we could envision the facility being completed," stated Dr. Anthony Holler, CEO of Sunniva.
"Despite this contribution, the owner and landlord has elected to seek to terminate our rights to lease the facility, a lease that has not yet begun, on a facility that is not yet completed, and we will look to the courts to enforce Sunniva's rights to operate."
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