Shiny Bud Inc. Completes NOI Process

TORONTO, Sept. 25, 2024 /CNW/ - Shiny Health & Wellness Corp. ("Shiny Health" or the "Company") (TSXV: SNYB) today provides an update to its press release issued on May 24, 2024 respecting the filing on May 24, 2024, by its wholly-owned subsidiary, Shiny Bud Inc. ("Shiny Bud"), of a Notice of Intention to Make a Proposal ("NOI") pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada). The principal purpose of the NOI filing was to create a stabilized environment for Shiny Bud and its financial advisors to run an orderly and flexible sale, investment and solicitation process ("SISP") with the goal of identifying one or more interested parties to acquire or make an investment in Shiny Bud's business or all or some of its assets. B Riley Farber Inc. was appointed as the trustee under the NOI (the "Proposal Trustee").

In connection with the filing of the NOI, Shiny Bud entered into an agreement with its existing senior creditor, (the "DIP Lender"), pursuant to which the DIP lender advanced a debtor-in-possession loan ("DIP Loan") to Shiny Bud in the amount of up to $580,000 to generally fund working capital needs and expenses related to the NOI proceedings. The DIP Loan and the SISP were approved by the Ontario Superior Court of Justice (the "Court") on June 6, 2024 (the "June 6 Order").

Notwithstanding an unsuccessful SISP, effective September 20, 2024, pursuant to a subscription agreement dated August 9, 2024, between Shiny Bud and a related party of the DIP Lender, 1000973177 Ontario Limited (the "Purchaser"), and approved by the Court, the Company issued 100 common shares to the Purchaser and all other previously issued securities of Shiny Bud were cancelled without consideration.  The Purchaser is now the sole securityholder of Shiny Bud.

In addition, on September 19, 2024, the Company assigned to the Purchaser its interest in an intercompany loan owing by its distressed subsidiary, Shiny Bud, for an initial amount which has been used to satisfy certain government remittances owing by the Company and a possible additional capped amount to be used for possible costs associated with a restructuring or bankruptcy process or other general maintenance fees of the Company.

Notwithstanding the disposition of Shiny Bud and its related liabilities and the liquidation of its currently uncollectible intercompany loan owing by Shiny Bud, the Company continues to be without financial resources to carry on business or meet its continuous disclosure obligations.  Accordingly, the Company continues to consider all possible strategic alternatives.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Shiny Health & Wellness Corp.

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