Simply Solventless Files Q1 2026 Financials During CCAA Restructuring

Simply Solventless Concentrates Ltd. announced on August 31, 2026 that it has filed its financial statements for the quarter ended March 31, 2026, together with the related management’s discussion and analysis and CEO and CFO certificates, on SEDAR+. The Calgary-based cannabis company also said it intends to file its financial statements for the quarter ended June 30, 2026, along with the related MD&A and CEO and CFO certificates, by August 31, 2026, according to a company news release.

SSC entered into a restructuring process on February 27, 2026. The August 31 release pointed to the company’s July 28, 2026 update on its Companies’ Creditors Arrangement Act proceedings, which it said outlines expected outcomes of the restructuring, including total estimated debt reductions of up to $19.9 million and total estimated cost reductions of up to $7.1 million per year. Should SSC close the restructuring prior to September 30, 2026, the initial impacts will appear in the company’s financial statements and MD&A for the period ending September 30, 2026.

Management Cease Trade Order Update

On August 21, 2026, the Alberta Securities Commission, SSC’s principal regulator, approved an extension of the company’s previously announced management cease trade order under National Policy 12-203 to August 28, 2026. According to SSC, the filing of the first-quarter financial statements was the last item creating a default under the policy. The company said it is unable to provide assurance as to when the order will be revoked but expects that it will be revoked in approximately two full business days.

Under the order, SSC’s management may not trade in securities of the company until it is revoked. The order does not affect the ability of other shareholders to trade. SSC confirmed it will satisfy the alternative information guidelines under National Policy 12-203 by issuing biweekly default status reports in the form of news releases for as long as the order remains in place. The company also confirmed there have been no failures to fulfill its stated intentions under the alternative reporting guidelines, that no other specified default has occurred or is anticipated, and that there is no other material information concerning its affairs that has not been generally disclosed.

Private Placement and Debt Settlement Terms

SSC announced the extension of its previously announced non-brokered private placement of up to 20,000,000 units at a price of $0.05 per unit for aggregate gross proceeds of up to $1.0 million, alongside the settlement of up to $3.0 million of convertible debentures and up to $1.6 million of promissory notes in units at $0.05 per unit. In addition, the conversion price of any debentures not settled in units will be amended from $1.00 per share to $0.15 per share, and the exercise price of the common share purchase warrants issued with the debentures will be amended from $1.20 per share to $0.25 per share.

As of August 31, 2026, SSC reported that it had received subscriptions for $0.5 million of units in the financing and elections to convert an aggregate principal amount of $2.2 million of debentures. The deadline for debenture holders to elect to convert was July 31, 2026.

Each unit consists of one common share of SSC and one common share purchase warrant, with each warrant exercisable for one common share at $0.10 per share for two years from the issuance date. The warrant expiry is subject to acceleration if the volume-weighted average trading price of SSC’s common shares on the TSX Venture Exchange exceeds $0.18 for at least five consecutive trading days. All securities issued under the financing and the debt settlement will be subject to a hold period expiring four months and one day from the date of issuance.

SSC said it expects to use the net proceeds of the financing for final restructuring professional fees, Humble pre-CCAA excise taxes, Canada Revenue Agency excise deposits, and general working capital. The company expects to close the financing, the debt settlement, and the debenture amendment concurrently on or before September 30, 2026. Closing of all three remains subject to the approval of the TSX Venture Exchange.

The financing was first detailed in SSC’s July 28, 2026 news release, which at the time expected the placement to close on or around August 15, 2026. That release also announced that the Court of King’s Bench of Alberta had approved transactions allowing SSC’s subsidiaries to exit CCAA protection and SSC and Humble Grow Co. to have the stay of proceedings lifted. Under the restructuring, SSC is consolidating from four operating facilities to two: the Humble cultivation platform and the ANC Inc. manufacturing and fulfillment operations. Massive Hash Factory has been shut down, and CannMart is being sold to an arm’s length third party. The July release described expected debt reduction of up to $20.6 million and a reduction of operating and debt service costs of up to $7.1 million per year.

The July release also disclosed a consent, waiver and amending agreement dated July 13, 2026 with KW Capital Partners Ltd., as agent, and holders of SSC’s secured convertible debentures issued on or about February 13, 2025. Those debentures bear interest at 11.0% per annum and had an aggregate principal amount outstanding of $5.975 million, with holders representing approximately 75% of the principal having consented. Under the agreement, interest accrued for the quarters ended March 31, 2026 and June 30, 2026 will be settled in units, interest for the quarter ending September 30, 2026 has been waived, and each holder will receive an amendment fee equal to 2.75% of its outstanding principal in units. SSC also agreed with certain noteholders to convert approximately $1.6 million of promissory notes into approximately 31,350,000 units at $0.05 per unit, reducing outstanding note principal from approximately $2.5 million to approximately $1.1 million and the associated monthly payments from approximately $108,333 to approximately $32,876, payable over two to four years at interest rates between 10% and 15% per annum.

“We are on track to achieve successful outcomes from our Restructuring, and on closing we can move forward with all revenue generating assets, materially less debt and costs, and two robust revenue growth engines (Humble and ANC),” Jeff Swainson, SSC’s president and CEO, said in the July 28 release.

The July release also announced that chief operating officer Murray Brown entered a retirement transition plan running from July 1, 2026 to June 30, 2027, stepping down as COO and assuming the role of vice president, corporate services.

SSC is a public company incorporated under the Business Corporations Act (Alberta). The company said it will provide any new information regarding the timing of the financing, debt settlement, and debenture amendment as it becomes available.