CBD Global Sciences, Inc. is pleased to share the news that, following the filing of its 2020 annual, and Q1 2021 and Q2 2021 financial statements and MD&A, the previously issued cease trade order has been revoked and the Company’s common shares have been approved by the regulators and Canadian Securities Exchange to resume trading. The Company’s common shares will resume trading at the opening of the market on September 28, 2021.
The financials submitted paint a picture of a company that has fought vigorously to survive through the impact of the global pandemic in 2020 and predatory litigation that led to the filing of Chapter 7 bankruptcies for two of its subsidiary companies in US Federal Bankruptcy courts in March of 2021.
When the lockdowns began in the US for the global pandemic, we saw many of our partnering retailers directly impacted. Global NV watched our fastest growing retailers in the airports (Hudson News and Minutes Suites) move from a 100+ store increase per month rollout to a cut in store foot traffic by over 96%. Our white label business was impacted by a cancellation of over $2.3M of purchase orders the first week of the lockdown. In June of 2021, the Company completed the meeting of creditors in the two bankruptcies which provided a road map for the next phase of operations for CBD Global. Upon completion, CBD Global is expected to retain less than $1.0 M USD in debt on its balance sheet, adjustments that are anticipated to be reflected in the Company’s Q3 financials for 2021.
Additionally, CBD Global successfully acquired both Aethics and CannaOil out of the bankruptcies. This purchase came with all trademarks, inventory and web URL’s related to the two brands. Until that was approved by the courts, we elected to put both brands into ‘auto pilot’ status. Leading up to and during the bankruptcies, CBD Global could not benefit from sales of products because it would be considered property of the estates in the bankruptcy. Until this matter was resolved we did not invest time or resources into the growth of sales and distribution for both brands, which directly impacted the revenue generation for the Company in the first two quarters of 2021. Now that the Company owns both brands, we are excited to initiate the relaunch.
Brad Wyatt, CEO of CBD Global Sciences, shared, “This is an exciting day for our Company. It has been difficult over the past 18 months traversing the obstacles placed in our way, but we have emerged stronger. Stay tuned for what is to come, I am excited about the future for CBD Global!”