City View Green Holdings, (CSE CVGR) and (OTCQB CVGRF), are considering spinning off their cannabis edibles division as part of an overall overhaul. It comes only months after the firm settled millions of dollars in debt and gave up its facility ownership plan.
Canadian cannabis producer said on Wednesday that it is evaluating several options for boosting shareholder value. This includes creating a publicly listed company to handle its edibles.
City View settled a C$2.3-million debt, which included approximately C$629-171 of debt held by directors and officers. This was done through the issuance of 78.3,000,000 common shares, each at C$0.03 a share.
In a press release, CEO Rob Fia stated that the company was now in a good position to implement one or several of its options.
According to an announcement, if the spin-off proceeds, City View will seek permission from Canadian securities regulators in order to transform from an industrial firm into an investment company focused on eSports, Artificial Intelligence, Blockchain and Web3 Technologies. Gold is another sector that’s being considered.
Toronto’s company, which received its processing cannabis license in April of 2021, has still not generated revenue for its edibles division and posted a C$244,328 in loss during its last quarter. City View switched recently to the leased-facility model after leaving retail operations with its 27.5% share in Budd Hutt. Budd Hutt had surrendered all of its Alberta licensing due to intense competition.
As it sought additional capital, City View extended the current offer of private placements until March 28, 2019. City View raised C$95,000 through its first tranche in June. City View also awarded 25 million shares of stock to selected directors, officers, consultants and employees, which can be exercised at 5 cents each share for a period of three years.