GFI Faces Severe Financial Strain, Receives Demand Letters From Lenders

TORONTO, ON / ACCESSWIRE / May 8, 2024 – Global Food and Ingredients Ltd. (TSXV:PEAS) disclosed receipt of demand letters from senior secured lenders requiring full repayment from its subsidiary, Global Food and Ingredients Inc. The debts demand immediate settlement of the amounts $14,987,992 and $6,844,973, including all accrued interest, fees, and legal costs.

The subsidiary, along with GFI, has been served with a Notice of Intention to Enforce Security under the Bankruptcy and Insolvency Act, indicating potential enforcement action by the lenders. This development follows GFI’s inability to acquire creditor protection, and the company has forewarned of an anticipated court hearing regarding appointing a receiver on May 23, 2024.

Due to non-compliance with the exchange requirements, trading of GFI’s common shares remains suspended on the TSX Venture Exchange, reflecting the company's troubling financial position.