CBD Global Sciences Resumes Trading After Filing of Financials
Denver, Colorado, Sept. 27, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- CBD Global Sciences, Inc. (OTC: CBDNF) (CSE: CBDN) (Frankfurt:GS3), (“CBD Global” or the “Company”), 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of its 2020 annual, and Q1 2021 and Q2 2021 financial statements and MD&A, the previously issued cease trade order has been revoked and the Company’s common shares have been approved by the regulators and Canadian Securities Exchange to resume trading.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 ( www.aethics.com ) and CannaOil ( www.cannaoilshop.com ) 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!”
ABOUT CBD GLOBAL SCIENCES INC.
CBD Global Sciences, Inc., is a hemp-based CBD producer and branding investment vehicle which currently owns two brands, branded under the name Aethics™ ( www.aethics.com ) and CANNAOIL ( www.cannaoilshop.com ), which include CBD Oil tinctures (liquid products), CBD capsules, CBD topicals, Hydration products and Confectionary products. CBD Global Sciences hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online.
CBD Global Sciences, through its wholly owned subsidiaries, Global Sciences Holdings and Legacy Distribution Group, ( www.legacydistributiongroup.com ), is delivering quality CBD products from multiple vendors of CBD infused products and non CBD products throughout the Colorado and Wyoming territories, currently servicing over 400 C-store and large box retailers with expansion plans to exceed 5,000 stores in the next 12-24 months.
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to future developments and the business and operations of the Corporation after the CSE listing. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. Readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.