NetworkNewsBreaks – RIV Capital Inc. (TSX: RIV)
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Posted On: 03/12/2021 4:51:29 PM
NetworkNewsBreaks – RIV Capital Inc. (TSX: RIV) (OTC: CNPOF) Announces Court Approval of PharmHouse Asset Purchase Agreement, $25M Voluntary Payment
RIV Capital (TSX: RIV) (OTC: CNPOF), (formerly Canopy Rivers Inc.), today announced that the asset purchase agreement proposed by PharmHouse Inc. has been approved by the Ontario Superior Court. The agreement outlines PharmHouse’s intent to sell various operating assets, including its facility and certain equipment located at the facility. As part of the announcement, RIV Capital also noted that it will make a voluntary $25 million payment to the lenders of PharmHouse’s nonrevolving syndicated Credit Facility, thereby reducing the company’s estimated liability in respect to the PharmHouse Credit facility by that same amount. RIV Capital noted that it is making the payment prior to the due date of March 31, 2021, with the intent, in part, to reduce near-term debt servicing costs and for tax-planning purposes in relation to the company’s recent disposition of certain assets to Canopy Growth Corporation, which resulted in a significant capital gain for the company. PharmHouse’s asset purchase agreement received court approval pursuant to a court order granted in PharmHouse’s proceedings under the Companies’ Creditors Arrangement Act. The agreement is still subject to certain closing conditions, which the company is confident will be satisfied during the next fiscal quarter. In addition, the company noted that court-ordered stay of proceedings with respect to PharmHouse was also extended to June 30, 2021 .
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
RIV Capital (TSX: RIV) (OTC: CNPOF), (formerly Canopy Rivers Inc.), today announced that the asset purchase agreement proposed by PharmHouse Inc. has been approved by the Ontario Superior Court. The agreement outlines PharmHouse’s intent to sell various operating assets, including its facility and certain equipment located at the facility. As part of the announcement, RIV Capital also noted that it will make a voluntary $25 million payment to the lenders of PharmHouse’s nonrevolving syndicated Credit Facility, thereby reducing the company’s estimated liability in respect to the PharmHouse Credit facility by that same amount. RIV Capital noted that it is making the payment prior to the due date of March 31, 2021, with the intent, in part, to reduce near-term debt servicing costs and for tax-planning purposes in relation to the company’s recent disposition of certain assets to Canopy Growth Corporation, which resulted in a significant capital gain for the company. PharmHouse’s asset purchase agreement received court approval pursuant to a court order granted in PharmHouse’s proceedings under the Companies’ Creditors Arrangement Act. The agreement is still subject to certain closing conditions, which the company is confident will be satisfied during the next fiscal quarter. In addition, the company noted that court-ordered stay of proceedings with respect to PharmHouse was also extended to June 30, 2021 .
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
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