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DionyMed Fails To Restructure Debt, Heads For Receivership

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DionyMed Fails To Restructure Debt, Heads For Receivership

The multistate cannabis brand DionyMed Brands Inc (OTC: DYMEF) said Tuesday it failed to restructure its debt or find a strategic buyer to acquire its assets.

What Happened

DionyMed said Oct. 23 that it would work with lenders on reaching a restructuring solution for its business to continue operating.

On Tuesday, the company said its actions failed to generate any positive results.

The company is in default of $24.81 million plus any additional interest, fees and expenses.

GLAS America, a collateral agent under the company's January credit agreement, served DionyMed with a petition to the Supreme Court of British Columbia to seek the appointment of a receiver over all of the company's properties and assets.

Why It's Important

GLAS already advised the company it will proceed with a receivership application, and the company has no intention of opposing the appointment of a receiver, DionyMed said.

DionyMed's four directors said they will resign upon the appointment of a receiver.

What's Next

The Receivership Petition is scheduled to be heard Oct. 29 in Vancouver.

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