MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) said that it has decided to suspend construction and certain business activities at the company’s Warman facility effective July 12, 2021. Additionally, MJardin said in a statement that it has launched a Sales and Investment Solicitation Process related to the company, and all its Canadian and US assets.
In April, MJardin said it was exploring financing options for the construction of Phase 2 of the Warman Facility, which is a cultivation facility in Winnipeg, Manitoba. At that time, MJardin said that COVID-19 had caused bans on all council meetings for Peguis, which has halted discussions regarding the potential joint venture. Construction activities at the Warman Facility were limited during most of 2020. The facility was presently being used primarily as a research facility for the development of new phenotypes.
Now the company said it is placing Warman into care and maintenance until further notice. “The company will keep the facility’s Health Canada licensing in place and retains the option, at the company’s sole discretion, to take the facility out of care and maintenance or if circumstances require, completely shut down Warman. The suspension of ongoing construction and certain business activities at Warman required the company to terminate seventeen (17) employees in Canada and the United States and will enable the company to preserve cash flow while it facilitates the SISP. The Company remains in constant dialogue with its business partners at Warman, as it works to identify potential transactions in respect of the Facility.”
Also back in April, the company created a special committee to explore, review and evaluate a broad range of strategic alternatives for the company due to its limited capital resources with a view to identifying a transaction that is in the best interests of shareholders. The Special Committee has recommended that MJardin conduct a formal, wide-ranging SISP in order to identify all potential options to maximize value for all of the company’s stakeholders. In response, MJardin said it is seeking expressions of interest, in any combination, in respect of the company, its assets, and the company’s CSE listing.