Well not sure how bad this is but does not look good.
Choom filed for a protection order CCAA
Vancouver, British Columbia--(Newsfile Corp. - April 22, 2022) - Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) ("Choom"), announces today that Choom and certain of its subsidiaries (Choom BC Retail Holdings Inc., 2151414 Alberta Ltd., 2688412 Ontario Inc., and Phivida Holdings Inc., herein the "Subsidiaries", and together with Choom, the "Companies") have obtained an order (the "Initial Order") of the Supreme Court of British Columbia providing the Companies protection from their creditors pursuant to the Companies' Creditors Arrangement Act (Canada) ("CCAA").
As part of the Initial Order, the Companies are authorized to enter into an interim financing term sheet (the "Interim Financing") with Aurora Cannabis Inc. (the "Lender") pursuant to which the Lenders has agreed to advance to the Companies up to an aggregate of $0.8 million to fund the Companies' ongoing operations and CCAA proceedings.
CCAA Proceedings
The Companies have obtained CCAA protection for an initial period of 10 days, expiring on May 2, 2022 and the Court has set a further hearing date of May 2, 2022 at which time an extension of the protection under the CCAA will be sought. Pursuant to the Initial Order, Ernst & Young Inc. has been appointed as monitor in the Companies' CCAA proceeding (in that capacity, the "Monitor").
While under CCAA protection, creditors and others are stayed from pursuing any claims or enforcing any rights against the Companies. The Companies are seeking creditor protection under the CCAA in order to permit the Companies to conduct a sale and investment solicitation process ("SISP") and facilitate a transaction that will allow the Companies to address their liquidity issues and stabilize operations. The Companies intend to operate in the ordinary course throughout the CCAA proceedings and while conducting the SISP. Management of the Companies will remain responsible for the day-to-day operations of the Companies, under the general oversight of the Monitor. The Companies' day-to-day obligations to employees and key suppliers of goods and services, from and after the filing date, is expected to continue to be met.
