Late in the trading day on Friday, July, 9, Lattice Biologics Ltd.(TSX-V: LBL) (OTCBB: LBLTF) issued an update on the company which has been unable to trade its stock for over a month. The company had originally made biologic products for use in the field of bone regeneration in the dental, spine, and general orthopedic indications. However, in the past few months said it was pivoting to cannabis and psychedelics. It seems it is declaring bankruptcy before heading down the new path.
The company said in a statement, “Business conditions have been exceptionally trying this year, and Lattice Biologics is no exception. Unfortunately, we were not able to resolve our debt obligations with our largest secured creditor. Lattice Biologics Inc., the U.S. subsidiary, was forced to restructure amid the multiple demands of the COVID-19 pandemic. Although the Company had no quality issues related to its products, due to excessive debt, we were forced to seek Chapter 7 bankruptcy protection for the subsidiary.”
It added, “Following a comprehensive strategic review of the Company, we made the exciting decision to enter and focus on the fast-growing psychedelic and Cannabis life sciences. With Lattice’s extensive knowledge of processing and purifying advanced biologics, we intend to be a leader in the emerging psychedelic market. We are proud to announce the addition of Ian Kerwin and Shawn Baghali to the Board of Directors. Both Shawn and Ian have extensive knowledge of the cannabis and psychedelic markets. Exiting Biologics allows the management team to reorganize the subsidiary and related debts while not affecting the holding and listed Company and to allow the Company and shareholders to focus on and benefit from future generated medicines and treatments. During this transition period, we remain committed to our Biologics customers, and will continue to support our technologies and services,” said Guy Cook, CEO.”
The company did note that its Canadian parent has remained in compliance with all FDA registrations and international guidelines. It also stated that all existing inventory processed by Lattice Biologics Inc. is safe to use until the expiration date and remains in full compliance with all regulatory bodies. Lattice also said it maintains all quality responsibilities related to tissue already processed.