CHATHAM, ONTARIO and TEL-AVIV, ISRAEL, June 27, 2023 (GLOBE NEWSWIRE) — Atlas Global Brands Inc. (“Atlas Global”, or the “Company”) (CSE: ATL) announced today that further to the Company’s news release dated June 2, 2023, Ernst & Young Inc. has been appointed as receiver and manager (the “Receiver”) over certain current and future assets of Atlas Biotechnologies Inc. (“ABL”), a direct wholly-owned subsidiary of the Company, and Atlas Growers Ltd. (together with Atlas Biotechnologies, the “Atlas Subsidiaries”), an indirect wholly-owned subsidiary of the Company, under the Bankruptcy and Insolvency Act (Canada) and the Personal Property Security Act (Alberta).
The Atlas Subsidiaries’ senior lender, the Agriculture Financial Services Corporation (the “AFSC”), obtained the receivership order from the Court of King’s Bench of Alberta (the “Court”) with the consent of the Atlas Subsidiaries. The order follows on the Company’s decision to cease operations at its facility in Gunn, Alberta and liquidate the assets of the Atlas Subsidiaries in an orderly manner as it focuses on cost reductions, savings and production efficiencies across its operations and the cannabis value chain. A copy of the order is or soon will be available on the Receiver’s website which can be accessed at https://documentcentre.ey.com/.
As would be expected in the circumstances, the AFSC has also filed a statement of claim against the Company with the Court in connection with the enforcement of an existing $1.4 million limited parental guarantee of the Company in respect of the indebtedness of ABL to the AFSC. The Company and the AFSC are in discussions concerning payment plan of the parental guarantee in the event the proceeds from the liquidation of the Atlas Subsidiaries’ assets are not sufficient to satisfy amounts due to the AFSC.
About Atlas Global Brands
Atlas Global is a global cannabis company operating in Canada and Israel with expertise across the cannabis value chain, including cultivation, manufacturing, marketing, distribution. Atlas currently distributes to seven countries: Australia, Canada, Denmark, Germany, Israel, Norway, and the United Kingdom. In addition to a differentiated product mix, Atlas operates two licensed cannabis facilities: (1) an EU-GMP facility in Chatham, ON, and; (2) a GACP and IMC-GAP facility in Stratford, ON. Atlas also has a majority interest in 3 medical pharmacies in Israel and has entered into binding agreements for the acquisition of a majority interest in a Trading House and 6 additional medical cannabis pharmacies in Israel. Learn more by visiting: www.atlasglobalbrands.com.
Chief Executive Officer
Media and Investor Relations
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking information in this news release is based upon assumptions that are subject to significant risks and uncertainties, including assumptions that or regarding: the winding up of the Atlas Subsidiaries and the liquidation of their respective assets will result in cost savings and efficiencies for Atlas Global; the insolvency proceedings with respect to the Atlas Subsidiaries will proceed in a timely manner and that all applicable regulatory approvals, court approvals and stakeholder approvals, as the case may be, will be obtained.
The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information, including: the costs associated with the insolvency proceedings of the Atlas Subsidiaries may negatively impact the Company’s financial results and operations and negatively impact the share price of Atlas Global on the Canadian Securities Exchange; the expected cost savings and synergies resulting from the insolvency proceedings may not be realized; the Atlas Subsidiaries may not obtain all applicable regulatory approvals, court approvals and stakeholder approvals, as the case may be, in a timely manner or at all; the ability of the Atlas Subsidiaries to operate in the normal course during the insolvency proceedings; and potential litigation resulting from the insolvency proceedings of the Atlas Subsidiaries.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information.
The forward‐looking statements set forth herein concerning the Company reflect management’s expectations as at the date of this news release and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.