ManifestSeven Holdings Corporation (CSE: MSVN; OTCMKTS: MNFSF) (” M7 ” or the ” Company“), California’s first integrated omnichannel platform for legal cannabis, announces that (i) pursuant to its announcement on June 25, 2021 , the Company continues to explore, review and evaluate a broad range of potential alternatives for M7 and, as part of that process, (ii) the Company has not made the applicable interest payments due on certain secured debt facilities, and (iii) the Company is in discussions with its lenders regarding a restructuring of the Company’s debt obligations.
The Company continues evaluating options around its strategic direction and drivers, operations and operating model, geographic footprint, value-driven elements of the supply chain, and resourcing. As a part of that effort, the Company is pursuing a range of financing alternatives and has determined that it is prudent for the Company to preserve cash in the short term, pending further information about the availability and terms of any such alternatives.
As such, the Company did not make the accrued interest payment of US$1,245,691 , due on June 30, 2021 , pursuant to the terms of its remaining secured convertible promissory notes (the ” Senior Notes “), which have an aggregate balance outstanding of US$4,138,071. Further, the Company did not make the Senior Note extension payment of US$125,000 described in further detail in the Company’s press release dated May 25, 2021 .
The Company also did not make interest payments due on a secured promissory note, in the aggregate principal amount ofUS$4,750,000 (” Weden Note “). The Weden Note is secured by a pledge and security agreement entered into among certain Company subsidiaries and the lender, which provides the lender with a first priority security interest in the equity and assets of the Company’s subsidiary, Health Healing Holistic Options, Inc., which operates under the trade name “Weden” and conducts cannabis retail and delivery operations out of the Company’s dispensary in Santa Ana, California .
By not making the interest payments, the Company is in default of each of the Senior Notes and the Weden Note. While the lender of the Weden Note and the holders of the Senior Notes each have reserved all rights and remedies regarding the respective defaults, all parties are in discussions with the Company about possible solutions. Further, the Company is working closely with its other major creditors, vendors, and landlords as it continues to pursue a range of strategic and financing alternatives.
About ManifestSeven Holdings Corporation
ManifestSeven Holdings Corporation (CSE: MSVN; OTCMKTS: MNFSF) (” M7 ” or the ” Company “) disrupts the California cannabis landscape by seamlessly integrating proprietary distribution, retail, and delivery operations into a unified statewide platform that supports compliant and efficient commerce, both for cannabis enterprises and consumers. M7 offers local on-demand delivery through a growing portfolio of delivery hubs and storefront dispensaries in the state’s major metropolitan markets through its direct-to-consumer division, Weden . Through its business-to-business division, Highlanders Distribution , the Company provides a comprehensive suite of commercial and compliant services to licensed cannabis cultivators, manufacturers, distributors, and retailers operating throughout California . M7’s 1-800-CANNABIS portal ties the Company’s integrated operations together with a centralized gateway through which businesses and consumers can access M7’s comprehensive suite of products and solutions. M7 is a publicly listed company on the Canadian Securities Exchange (” CSE “) trading under the ticker symbol “MSVN”. Additional information is available under the Company’s SEDAR profile at www.sedar.com .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs and assumptions regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. This forward-looking information is based on certain assumptions made by management and other factors used by management in developing such information. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in its entirety by this notice.
The Company’s securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, the Company’s securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of any offer to buy any Company’s securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the CSE 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.
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