City View Green Holdings (CSE: CVGR) (OTCQB: CVGRF) is considering spinning off its cannabis edibles subsidiary as part of a broader overhaul. The announcement comes just months after settling millions of dollars worth of debt and abandoning its facility ownership strategy.
The Canadian cannabis manufacturer said Wednesday it’s evaluating several options to boost shareholder value, including potentially creating a separate publicly traded company for its edibles business.
The pivot follows City View’s recent C$2.3 million debt settlement, including roughly C$629,171 in debt held by company directors and officers, through issuing 78.3 million common shares at C$0.03 per share.
“With the recent debt settlements for over $2.3 million, the company is now well positioned to execute on one or more of the various options,” CEO Rob Fia said in a statement.
If the spinoff moves forward, City View would seek approval from Canadian securities regulators to go from an industrial company into an investment firm focused on e-sports, artificial intelligence, blockchain and Web3 technologies, according to the announcement. The gold sector is also under consideration.
Despite receiving its cannabis processing license in April 2021, the Toronto-based company has yet to generate any revenue from its edibles business and reported a C$244,328 loss in its most recent quarter. City View recently moved to a leased facility model after exiting retail operations through its 27.5% stake in Budd Hutt, which surrendered its final Alberta licenses due to fierce competition in small towns.
The company extended its ongoing private placement offering until March 28 as it seeks additional capital. City View previously raised C$95,000 in June through a first tranche offering. It also granted 25 million stock options to certain directors, officers and consultants, exercisable at 5 cents per share over three years.
The Cannabis edibles maker mulls spinning off its edibles unit as it pivots away from facility ownership after settling millions in debt. Read More
