Atlas Global makes changes to Canadian operations
June 5, 2023 By Grow Opportunity Staff
(Globe Newswire) Chatham, Ont., Tel-Aviv, Israel — Atlas Global Brands Inc., a cannabis company with expertise across the value chain, continues to focus on cost reductions, savings and production efficiencies.
In furtherance of those objectives, the company will cease operations at its facility in Gunn, Alberta and liquidate the assets of its direct and indirect wholly-owned subsidiaries operating the site. Approximately 50 employees have been impacted by this decision.
All packaging activities have been relocated to the Company’s facility in Chatham, Ontario, which now serves as the company’s Canadian hub for the processing of domestic and EU GMP flower and oils for international markets, enabling centralized manufacturing and maximizing production capabilities.
Also, in connection with the transition of operations to Ontario, the company’s recent acquisition of GreenSeal which produces 3,500 kg annually of cannabis products, will support the production and distribution of brands domestically and internationally. GreenSeal’s nursery program will continue to expand Atlas Global’s genetics and innovation pipeline for new product development.
“We have achieved many significant milestones within the initial five months of listing on the CSE, including in particular securing a robust acquisition pipeline in Israel and completing the acquisition of GreenSeal in April. Ceasing operations at the Gunn, Alberta facility was an extremely difficult decision, that was not taken lightly. We are working diligently to strengthen our liquidity and secure our path for the future in a challenging market and believe ceasing operations in Gunn, Alberta is an important step towards executing on our objective of reducing costs, streamlining operations and increasing margins. We are confident that our existing operations in our Chatham and Stratford Ontario facilities will be able to produce the quantity and quality of cannabis required for current and future demand. We wish to thank the Gunn, Alberta team members for their contributions.” — Bernie Yeung, CEO, Atlas Global
Since commencing trading on the CSE in January 2023, the Company completed the acquisition of GreenSeal on April 28, 2023, a GACP & CUMCS certified indoor growing facility located in Stratford, Ontario and entered into binding agreements for the acquisition of controlling interests in six pharmacies in Israel, as well as to acquire a trading house in Tel Aviv, which will be leveraged as an export distributor for all medical pharmacies.
After an end-to end review of its global operations, including the anticipated impact of these acquisitions on operations, Alvarez & Marsal Canada ULC was engaged as financial advisor to Atlas Biotechnologies Inc., a direct wholly owned subsidiary of Atlas Global, and Atlas Growers Ltd., an indirect wholly-owned subsidiary of Atlas Global and the operator of the Gunn, Alberta facility.
Based on that financial analysis and after careful consideration of available alternatives, the Atlas Subsidiaries’ cash positions, forecasted revenue and expenses, scheduled debt payments and demands for payment received from creditors and the operational capabilities of Atlas Global’s other business units in Ontario, it was determined to be in the best interests of the Atlas Subsidiaries and Atlas Global as a whole to liquidate the assets of the Atlas Subsidiaries, through a court-supervised process, in an orderly fashion so as to maximize recoveries for all affected stakeholders. The Atlas Subsidiaries are currently in discussions with their senior lender, with whom the Atlas Subsidiaries are working cooperatively, to determine the nature of the proceedings that will be commenced to effect this orderly liquidation.
Also, owing in material part to the number and timing of recent acquisitions and the liquidation of the Atlas Subsidiaries, the Company has determined that the forecasted gross profit and available funds for the 12 months ending December 31, 2023, in its amended and restated filing statement dated December 29, 2022, should no longer be relied upon.
The company will provide appropriately updated information including the disclosure prescribed by National Instrument 51-102 – Continuous Disclosure Obligations in connection with the issue of its audited financial statements for the 15-month period ended March 31, 2023, due July 31, 2023.
Print this page