Press Release Canada: SLANG Worldwide Announces Wind-Down Plan and Anticipated Receivership in Colorado and Bankruptcy Proceedings

The Release Says

TORONTO, Nov. 5, 2024 /CNW/ – SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) (“SLANG” or the “Company“) today announced that it has finalized a wind-down plan for the Company and its assets and subsidiaries with its secured lenders (the “Lenders“) under the Company’s credit and guaranty agreement dated November 15, 2021, as amended (the “Credit Agreement“), given that the Company does not anticipate being able to repay amounts owing under the Credit Agreement at the upcoming maturity date of November 15, 2024.

As part of the wind-down plan, it is anticipated that the following steps will be undertaken by the Company and its subsidiaries in the near term: (i) the disposition of the Company’s assets in Colorado by way of a Colorado receivership proceeding involving the Company’s Colorado subsidiaries;  (ii) an assignment into bankruptcy of the Company pursuant to Canada’s Bankruptcy and Insolvency Act (the “Bankruptcy Proceedings“); and (iii) a possible sale by the Company’s Vermont subsidiaries of their respective assets, followed by an assignment for the benefit of creditors in respect of any remaining assets, all subject to local Vermont regulatory approval.

Despite the best efforts of the Company, it has been unable to attract a viable transaction to restructure its debts and/or seek any sales of the Company or of its assets in the normal course. The difficult decision to approve and enter into the wind-down plan was made after careful consideration of the current financial condition of the Company and its subsidiaries, the Company’s inability to pay its liabilities as they become due, and negotiations between the Company and the Lenders. The Company anticipates that B. Riley Farber Inc. will be appointed as the trustee under the Bankruptcy Proceedings.

About SLANG Worldwide Inc.

SLANG Worldwide Inc. is an industry leader in branded cannabis consumer packaged goods, with a diversified portfolio of five distinct brands and products distributed across the U.S. Operating in 13 legal cannabis markets nationwide. Learn more at slangww.com.

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