Eureka93 says it is running out of capital, laying off employees and even talks about selling the company
Eureka93 says it is running out of capital, laying off employees and even talks about selling the company
A report from Élizabeth Séguin and François Carrier
Eureka93, formerly known as LiveWell Food Canada, and also the owner of the project to establish a cannabis research Center at the Industrial Park in the municipality of Litchfield, announced that it is currently evaluating a number of options, due to ”a lack of capital”. Among the options, Eureka93 has even considered selling the company. The Company is also considering, in addition to selling the company or selling assets, to merge or create of a joint venture.
Without specifying which sectors or projects were affected, Eureka93 states that, to limit expenses, work has been suspended and employees have been laid off in all of their establishments. Eureka93 added that given a “lack of resources and the complexity of their accounting information”, no audited financial statements, nor management analyses on the financial position and results for the quarter, which ended on June 30th, have been filed or prepared.
This has significant legal implications for Eureka93, as the Ontario Securities Commission issued the cease trade order on all of the Company’s common shares as of September 5th. This order could be lifted if the Company files the legally required documents for the second quarter of 2019.
Eureka93 said that it does not intend to divulge current developments, and that no timetable has been set for the moment. It also stated that, even if a process has been started, no decision has been made.
« While the Company has initiated this strategic review process, there is no certainty that any transaction or alternative will be undertaken or pursued. Eureka93 has not set a definitive schedule to complete its evaluation and no decision on any particular transaction or alternative has been reached at this time. In accordance with its continuous disclosure obligations, the Company will disclose material developments, if, as and when they occur. » -Eureka93
A project of economic scale with decreasing size over recent months
In February 2018, the Pontiac Cannabis Research Center project received extensive media coverage across the province, for creating 500 jobs. At the time, there was also talk of a global center for innovation and scientific research, as well as a 600,000 square foot greenhouse project for cannabis cultivation and processing.
On April 27th, 2018, Michel Lemieux, now the Director of Government Relations and Public Affairs at Eureka93, spoke to CHIP 101.9 about the start of the recruitment process. After working on the lands in the industrial park in Litchfield over the following months, the project was halted pending the company’s search for a financial partner.
Along the way and according to the information and details provided by Michel Lemieux, the expected number of jobs available had decreased. A few months later, CHIP 101.9 learned that the project was stalled and some of the company’s service providers had not been paid.
In December 2018, the CHIP 101,9 newsroom released information confirming that the planned Cannabis Research Center, located on 211, highway 301 in Litchfield, was subject to a legal mortgage from the Montreal-based Company Deslan – A.I.M Environmental.
On April 11th, LiveWell Canada merged with Vitality CBD Natural Health Product Inc. and announced its new name: “Eureka93“.
According to its press releases, Eureka93 defines itself as a vertically integrated life sciences company with focuses on the extraction, production and distribution of cannabidiol (CBD) hemp. The Company claims to have significant assets in the United States and Canada, and is committed to providing the highest quality products to its customers. It also mentioned an exclusive extraction process, as well as research and scientific expertise in the manufacturing of CBD products.
To follow this file, here are the different developments in chronological order:
26 février 2018 : Michel Lemieux presents the project
https://chipfm.com/Entrevue-Michel-Lemieux-Le-projet-Litchfield-de-LiveWell-Food
27 avril 2018 : LiveWell Recruitment
https://chipfm.com/Entrevue-Michel-Lemieux-Recrutement-LiveWell-Foods-Canada-a-Litchfield
16 octobre 2018 : Interview with Michel Lemieux: a few hours before the legalization of cannabis, CHIP 101,9 discusses with LiveWell
https://chipfm.com/Entrevue-Michel-Lemieux-Developpements-du-projet-LiveWell-a-Litchfield
5 décembre 2018 : The future Cannabis Research center subject to a legal mortgage
https://chipfm.com/Le-futur-Centre-de-recherche-de-Livewell-a-Litchfield-vise-par-une-hypotheque-5325
12 avril 2019 : LiveWell becomes “Eureka93”
https://chipfm.com/La-Societe-LiveWell-devient-Eureka-93
Press release from “Eureka93”
https://eureka93.com/category/communiques-de-presse/
Articles from National Media on the Research Center:
Le Droit:
https://www.ledroit.com/actualites/une-usine-de-marijuana-dans-metcalfe-ecb2ebc5a8b764e7fe33b6e99bb29c27
Journal de Montréal:
https://www.journaldemontreal.com/2018/02/16/500emplois-du-pot-dans-une-des-regions-les-plus-pauvres
98,5 Outaouais:
https://www.fm1047.ca/recherche?query=Michel%20Lemieux
