Phoenix, Arizona and Vancouver, British Columbia--(Newsfile Corp. - November 15, 2023) - Over the past couple weeks, the recently appointed leadership at YourWay Cannabis Brands Inc. (CSE: YOUR) (OTC: YOURF) ("YourWay" or the "Company") has been evaluating the overall financial status of the Company, along with Labtronix, Inc. ("Labtronix") and the Company's other subsidiaries. Management's primary objectives have included achieving financial stability, conducting essential financial audits to lift the cease trade order and relisting Company's shares on the CSE.
During this evaluation, management has identified several critical factors:
- The auditors are working through the Company's financials for 2022 and are consuming significant company resources and the timeline for completion is yet to be determined.
- Financials for the 2023 interim periods and the 2023 year end have not been prepared yet and the closing procedures required to prepare the same have not been established.
- Certain tax returns for 2022 have not been filed and the liability associated with same is still being determined.
- YourWay and Labtronix have been named in a lawsuit by Trulieve Cannabis Corp., the defense of which is consuming significant Company resources.
- Labtronix has experienced a notable decline in sales over the past few months, aligning with the initiation of the aforementioned lawsuit.
Management is diligently reviewing all aspects of the business and will provide timely updates to shareholders.
Offer to Purchase Labtronix
Management has received a Letter of Intent (the "LOI") from an arm's length entity based in Arizona, expressing interest in acquiring 100% of the shares of YourWay's wholly-owned subsidiary, Labtronix, Inc.
YourWay management is considering the offer and evaluating its potential to contribute to the Company's objectives. At the request of the potential buyer, their identity cannot be disclosed at this time.
The LOI outlines the following terms and conditions:
- Purchase price of US$3 million for a 100% ownership stake in Labtronix.
- Assumption of the Trulieve lawsuit and another outstanding employee lawsuit.
- Assumption of all existing debts.
- Assumption of all tax liabilities pertaining to Labtronix Inc.
Beyond these specified terms, it appears that the sale of Labtronix could diminish a significant portion of the Company's audit risk, presenting an opportunity for management to complete audits more smoothly in the future. Additionally, the transaction could offer capital that management could deploy to explore other opportunities, ultimately enhancing shareholder value.
About YourWay Cannabis Brands Inc.
YourWay is committed to redefining the way consumers and cannabis brands interact with the consumer. By building their own brands, partnering with others, they are dedicated to expanding their reach; remolding the cannabis industry and ultimately redefining how consumers and cannabis brands interact.
Website: www.yourwaycannabis.com
contact: ir@yourwaycannabis.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release may include "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is 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 information.
The Company, through its subsidiaries, is involved in the manufacture, possession, use, sale, and distribution of cannabis in the United States. Local state laws where the Company operates permit such activities; however, investors should note there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains illegal under federal law in the United States to cultivate, distribute or possess cannabis. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities may form the basis for prosecution under applicable federal money laundering legislation. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/187557
