The sale will allow GenCanna to reduce debt and consolidate its operations in Kentucky as a leading standalone CBD and wellness business
GenCanna Global USA has secured approval from the United States Bankruptcy Court for the Eastern District of Kentucky to divest substantially all of its assets to funds managed by its long-term investor MGG Investment Group.
GenCanna is a vertically integrated agri-tech firm specialised in the production of hemp rich in cannabidiol (CBD).
The sale will allow GenCanna to reduce debt and consolidate its operations in Kentucky as a leading standalone CBD and wellness business.
GenCanna Global USA appoints new CEO
Along with the sale of its assets to MCG, the agri-tech firm has appointed Andrew Barnett as the new CEO, effective immediately.
In his career, Barnett has overseen the strategic, operational and financial requirements of private and publicly held companies, from start-up to mature enterprises, in healthcare and wellness, retail, manufacturing, and distribution.
He has taken up several C-suite roles and served as a consultant to operating company management, lenders and investors.
On his appointment, Barnett said: “I am pleased to join GenCanna at this critical time in its evolution and look forward to stewarding the company into its next chapter.”
Barnett added: “GenCanna’s industry-leading technology and deep customer focus will enable it to continue to deliver great products, especially at a time when consumers are increasingly aware of and incorporating high-quality CBD into their health and wellness routines.
“Today, GenCanna is a stronger, better capitalised, and more competitive company that is poised to further its leadership position in the still-emerging hemp industry.”
GenCanna founder Matty Mangone Miranda, who will continue to serve as an advisor to the company, said: “GenCanna is a proud Kentucky-bred business and has a bright future under Andrew’s leadership.
“Importantly, I would like to thank GCG’s employees, vendors, partners and farmers, as well as MGG, for their support throughout this process.”
On the transaction, Huron Consulting Services has served as an operational advisor, Jefferies has served as a financial advisor, and Benesch Friedlander Coplan & Aronoff along with Dentons Bingham Greenebaum have served as the legal counsel of the company.