CALEB NICKERSON
Pontiac Sept. 6, 2019
Things are looking grim for the hemp company that planned to build a cannabidol (CBD) research facility at the . . .
former mill site in Litchfield.
Eureka 93 announced in a press release on Sept. 6 that they are commencing a review of their strategy and finances, due to “limited capital resources “ and “recent adverse conditions in the public capital markets and CBD isolates market.”
The release stated that the alternatives could be a merger, the sale of the company or its core assets. As a result, the company has “suspended non-critical work and temporarily laid off a substantial portion of employees at all locations.”
“While the Company has initiated this strategic review process, there is no certainty that any transaction or alternative will be undertaken or pursued,” the statement reads, adding that there is no schedule to complete the review.
The company was also unable to produce its second quarterly financial statements for the period ending on June 30, due to the complexity of the reverse acquisition that Eureka 93 underwent in April, resulting in the Ontario Securities Commission issuing a cease trade order on the company’s common stock.
The stock’s price had plummeted in July when Eureka 93 unhalted after undergoing two mergers and settling a dispute with their financiers, Canopy Growth and Canopy Rivers.
Eureka 93, when it was operating as LiveWell Foods, had announced a CBD research facility in Litchfield, on the site of the former paper mill, and even had contractors preparing the site for construction in 2018 before work was suddenly halted. Deslan – A.I.M Environmental, the company hired to perform the work, filed a legal motion in the amount of $1.6 million for work completed at the site.
