Cannabis company denies allegations by spurned property development partner and has order to delay Celista Property sale set aside by Supreme Court of British Columbia.
Kelowna, British Columbia and Las Vegas, Nevada — Fiore Cannabis Ltd. (CSE:FIOR) (OTCQX:FIORF) (“Fiore” or the “Company”), a licensed multi-state cannabis cultivator, producer and retailer, today announced that the Supreme Court of British Columbia (the “Court”) has set aside a Preservation Order relating to the sale of the Company’s Celista, British Columbia asset (“Celista Property”) and proposed arbitration proceedings be held with Chase Business Development Corp. (“Chase Development”).
Chase Development had filed an application to the Court on August 13, 2021 without advising or giving notice to Fiore and obtained an interim order preventing the sale, transfer or assignment of the Celista Property (the “Preservation Order”). This came on the heels of Fiore announcing on August 4, 2021 that it had signed a Definitive Agreement with numbered company 1313721 B.C. Ltd. (the “Sale Agreement”) that included transferring ownership of the Celista Property in consideration for debt and liabilities associated with the purchasing stakeholders. The Sale Agreement enables Fiore to clean up its balance sheet by eliminating approximately $3.9 million in total liabilities, including a mortgage and other obligations.
The Court made the Preservation Order effective for a limited period to allow Fiore the opportunity to dispute its issuance. A hearing was held on September 16 and 17, 2021 for the Court to consider whether to extend or dissolve the Preservation Order. The Court ultimately ordered the Preservation Order be set aside as it determined that Chase Development should not have applied for and obtained the Preservation Order without providing notice to Fiore of an intention to do so. As a result, Fiore was awarded its costs of defending the application. Fiore has now filed an application with the Court seeking an order to stay the action started by Chase Development in favour of arbitration. Fiore anticipates this application will be heard in October or November 2021.
“The Sale Agreement was the best possible outcome for Fiore and its shareholders and we strongly stand by that decision. We as a company needed to make a decision that would ensure we keep our focus on our operations in Nevada and California where Fiore’s business can be successful and generate returns for investors. We responded to Chase Development’s surprise attack by vigorously defending the actions we have taken and to shine a light on Chase Development’s frankly aggressive move,” said Erik Anderson, President and CEO of Fiore Cannabis.
Fiore had partnered with Chase Development originally in January 2019 to develop the Celista Property into a cannabis production operation and to share in any eventual profits. The property development did not work out as initially proposed and ultimately was not completed and therefore no profits were generated. Fiore had the obligation and responsibility to determine the best course for the Celista Property and did so by initiating negotiations with multiple interested parties in early 2020, communicating with all investors involved about the options and possible outcomes since that time, and eventually signing the Sale Agreement that was announced on August 4, 2021.
About Fiore Cannabis
Fiore Cannabis Ltd. (CSE:FIOR) (OTCQX:FIORF) is a publicly traded company that has been investing in the development of recreational and medical cannabis products since 2014. The Company has expanded its operations to include cultivation, production and retail offerings in the key North American legal jurisdictions of Nevada and California. Fiore’s portfolio of brands caters to diverse consumer and patient experiences, with brands and products that address recreational, medical, wellness as well as new consumer experience preferences. Current brands include Fiore Cannabis, Diamante Labs, Surfer and The Weekender. The Company operates retail cannabis outlets through its Green Leaf Wellness brand. For more information, please visit www.fiorecannabis.com.
For Further Information
Erik Anderson, President and CEO
1-877-438-5448 Ext. 713
This news release contains forward-looking statements or information that relate to our current expectations and views of future events, including in respect of the strategic goals of the Company, our future growth and expansion plans in the U.S., the impact of the sale of the Celista asset on the Company’s balance sheet, the impact of the sale of the assets in respect of the Company’s future results, operations and performance. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate”, “objective”, “may”, “will”, “might”, “should”, “could”, “can”, “intend”, “expect”, “believe”, “estimate”, “predict”, “potential”, “plan”, “is designed to”, “project”, “continue”, or similar expressions suggest future outcomes or the negative thereof or similar variations. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.
Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Company’s reports and filings with the applicable Canadian securities regulators, risks and uncertainties related to the judgement of management in relation to accounting issues resulting from the sale of the assets, risks and uncertainties related to the impact of the sale of the assets, the effects and outcomes of the proposed expansion plans in the U.S., changes to the legislative regime to which the Company is subject to, the cultivation, production and sale of cannabis products in Nevada and California, and the saleability of future harvests. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.