Sunniva Secures Short-Term Loan As It Tries To Handle Financial Challenges

Sunniva Inc. SNNVFSNN reported Thursday its subsidiary, CP Logistics LLC, has ensured a short-term loan for net proceeds of $477,803 with a non-bank private lender.

The loan, which is one step in its strategy to handle ongoing liquidity matters, has a 12-month term, 12% interest rate, and is secured against Sunniva’s Long Beach-based warehouse, the company said.

"Similar to other companies in the cannabis industry, we are struggling to find capital raising opportunities to fund our ongoing expenses and debt obligations,” Dr. Anthony Holler, Chairman and CEO of Sunniva said in a statement. “This loan is one of the cash generating initiatives that we have been pursuing; however, our stakeholders should understand that as previously disclosed Sunniva continues to face significant business and financial challenges.

“In California, we are involved in a dispute related to the Cathedral City Glasshouse where the owner and landlord is seeking to terminate our lease.  While we are pursuing our legal rights under the lease and investigating options to deal with our significant liquidity issues, there can be no certainty of our ability to generate or raise the funds that we require or of our ultimate success in resolving our difficult challenges"

Furthermore, Sunniva announced its board director Luke Stanton has resigned from this position, but he will remain a part of the company by working in a legal advisory sector.

Sunniva' stock closed Wednesday's session 29.94% higher at 19 cents per share.

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