A letter from GenCanna
Dear Valued Customers,
We hope this message finds you healthy and safe. We at GenCanna, like the rest of the world, have been doing our best to keep our people, partners, and customers safe and healthy through the COVID-19 pandemic.
We now have a clear future to our business. The process we have been engaged in since February resulted in the approval of a sale to MGG Investment Group by the U.S. Bankruptcy Court for the Eastern District of Kentucky and the sale has closed. Under new ownership, GenCanna’s operations will continue in Winchester, Ky with significantly reduced debt and substantial new capital to pursue growth opportunities. MGG and GenCanna are in late-stage discussions with potential CEO and senior management candidates consisting of industry leaders to join the new company.
This transaction forms a new entity allowing the GenCanna name to continue as a standalone CBD and wellness company and transition into new partnerships with our customers, suppliers, and vendors.
We appreciate your continued patience during this bankruptcy process. As we transition operations to the new owners over the next few months, we will continue our day-to-day operations with the goal of minimal disruption to you.
We realize many of our customers will have questions about what this process means and we have compiled a brief FAQ to address common questions that may arise. Thank you for your time and consideration.
Sincerely,
GenCanna Leadership Team
Customer Frequently Asked Questions
What about the recent US Trustee filing on Chapter 7?
The US Trustee recently filed a motion to convert our case and we filed our objection. We obtained entry of an order to sell the businesses, and the recent gap in insurance coverage on two small parcels of real estate does not provide grounds for conversion.
Who will be my Sales contact at GenCanna moving forward?
Your sales contact will be the same.
What was announced?
GenCanna has successfully completed the marketing process we have been pursuing since we filed for bankruptcy. The Bankruptcy Court approved a sale of our business to MGG Investment Group and the sale has closed. Under new ownership, operations will continue in Winchester, Ky. The new ownership structure firmly supports the vertically-integrated business model and creates a stronger, better capitalized, and more competitive company with a solid financial foundation.
Who is MGG Investment Group?
MGG Investment Group has been GenCanna’s financial partner and has provided funding for our operations since June 2019 as well as provided additional capital following our bankruptcy filing in February 2020.
Do the new owners of GenCanna’s business plan on continuing to do business as usual?
GenCanna's new ownership is familiar with the hemp and CBD space and will have a hands-on orientation to streamlining all business operations.
Will GenCanna have a secure and consistent supply of Isolate, Broad Spectrum, Full Spectrum?
GenCanna's superior 2019 harvest is now coming into full production and we have turned the corner on all product forms. We expect our CBD supply to be unmatched globally.
Will GenCanna’s leadership change?
It is expected that new additions to senior management will occur shortly. MGG and GenCanna are in late-stage discussions with potential CEO and senior management candidates consisting of industry leaders to join the new company. However, it is also of great value to the new owners to ensure the critical industry and company knowledge held by our current leadership personnel continues to be available. MGG will continue collaborating with current leadership although titles and roles made be changed, including the possibility of some moving into an advisory or consulting capacity.
Will GenCanna continue to produce finished goods?
Yes. GenCanna leads the industry in helping each of its customers to meet their needs for bulk ingredients, specialized formulations, custom labeled/filled packages, or unlabeled QSP products.
If we have made our initial payment for a product and it's not finished before the transaction to new ownership, will we get our finished product or our down payment back?
All orders placed before the transition to new ownership will be completed on time and delivered per your agreement, GenCanna will not stop production of any current order.
Will there be any changes to the payment process?
You will continue via the current channels during the transition period and we will communicate to you timely of any changes regarding billing and payments.
Is my customer information being sold/safe?
GenCanna has never sold, and will never sell, contact information. Privacy and confidentiality are key components to any successful business relationship.
Dear Valued Customers,
We hope this message finds you healthy and safe. We at GenCanna, like the rest of the world, have been doing our best to keep our people, partners, and customers safe and healthy through the COVID-19 pandemic.
We now have a clear future to our business. The process we have been engaged in since February resulted in the approval of a sale to MGG Investment Group by the U.S. Bankruptcy Court for the Eastern District of Kentucky and the sale has closed. Under new ownership, GenCanna’s operations will continue in Winchester, Ky with significantly reduced debt and substantial new capital to pursue growth opportunities. MGG and GenCanna are in late-stage discussions with potential CEO and senior management candidates consisting of industry leaders to join the new company.
This transaction forms a new entity allowing the GenCanna name to continue as a standalone CBD and wellness company and transition into new partnerships with our customers, suppliers, and vendors.
We appreciate your continued patience during this bankruptcy process. As we transition operations to the new owners over the next few months, we will continue our day-to-day operations with the goal of minimal disruption to you.
We realize many of our customers will have questions about what this process means and we have compiled a brief FAQ to address common questions that may arise. Thank you for your time and consideration.
Sincerely,
GenCanna Leadership Team
Customer Frequently Asked Questions
What about the recent US Trustee filing on Chapter 7?
The US Trustee recently filed a motion to convert our case and we filed our objection. We obtained entry of an order to sell the businesses, and the recent gap in insurance coverage on two small parcels of real estate does not provide grounds for conversion.
Who will be my Sales contact at GenCanna moving forward?
Your sales contact will be the same.
What was announced?
GenCanna has successfully completed the marketing process we have been pursuing since we filed for bankruptcy. The Bankruptcy Court approved a sale of our business to MGG Investment Group and the sale has closed. Under new ownership, operations will continue in Winchester, Ky. The new ownership structure firmly supports the vertically-integrated business model and creates a stronger, better capitalized, and more competitive company with a solid financial foundation.
Who is MGG Investment Group?
MGG Investment Group has been GenCanna’s financial partner and has provided funding for our operations since June 2019 as well as provided additional capital following our bankruptcy filing in February 2020.
Do the new owners of GenCanna’s business plan on continuing to do business as usual?
GenCanna's new ownership is familiar with the hemp and CBD space and will have a hands-on orientation to streamlining all business operations.
Will GenCanna have a secure and consistent supply of Isolate, Broad Spectrum, Full Spectrum?
GenCanna's superior 2019 harvest is now coming into full production and we have turned the corner on all product forms. We expect our CBD supply to be unmatched globally.
Will GenCanna’s leadership change?
It is expected that new additions to senior management will occur shortly. MGG and GenCanna are in late-stage discussions with potential CEO and senior management candidates consisting of industry leaders to join the new company. However, it is also of great value to the new owners to ensure the critical industry and company knowledge held by our current leadership personnel continues to be available. MGG will continue collaborating with current leadership although titles and roles made be changed, including the possibility of some moving into an advisory or consulting capacity.
Will GenCanna continue to produce finished goods?
Yes. GenCanna leads the industry in helping each of its customers to meet their needs for bulk ingredients, specialized formulations, custom labeled/filled packages, or unlabeled QSP products.
If we have made our initial payment for a product and it's not finished before the transaction to new ownership, will we get our finished product or our down payment back?
All orders placed before the transition to new ownership will be completed on time and delivered per your agreement, GenCanna will not stop production of any current order.
Will there be any changes to the payment process?
You will continue via the current channels during the transition period and we will communicate to you timely of any changes regarding billing and payments.
Is my customer information being sold/safe?
GenCanna has never sold, and will never sell, contact information. Privacy and confidentiality are key components to any successful business relationship.
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