Pulse crop and plant-based food ingredient company Global Food and Ingredients Ltd. (GFI) is winding down its operations while owing its secured lenders at least $21 million.
The Toronto, Ont.-based company bought and marketed peas, beans, lentils, chickpeas and other high-protein specialty crops, operating three handling facilities at Lajord, Sedley, and Zealandia, Sask., and a distribution centre near Raleigh, North Carolina.
As of May 15, the Canadian Grain Commission has revoked the licences of Global Food and Ingredients Inc., including its grain dealer licence and three primary elevator licences for the noted elevators. Also revoked are the process elevator licences at Bowden, Alta., and Zealandia, Sask.
In a May 7 press release, the company said “the wind-down is a result of recent macro-economic events, which have caused GFI to experience challenges in purchasing adequate supplies of raw material inputs for its processing assets…”
“Management and the board of directors have determined that these challenges will make it near impossible for the Company to continue to operate and service its debts, leaving no other option than to wind-down its operations,” the company continued.
GFI said its board and financial advisors reviewed options to allow for business operations to continue, including refinancing, bridge financing, and the sale of all or parts of the business and assets, but those efforts were unsuccessful.
Both of the company’s unnamed senior secured lenders have demanded full payment of Global Food and Ingredients Inc.’s debt, with balances of $14,987,992 and $6,844,973, respectively, according to a May 8 update.
The application for the appointment of the receiver is expected to be heard on May 23 in the Ontario Superior Court of Justice in Toronto. Trading of the GFI’s common shares on the TSX Venture Exchange (which traded under the acronym PEAS) has been suspended, and the company’s board of directors has resigned.
GFI acquired the three pulse and specialty crop facilities in Saskatchewan from insolvent Canpulse Foods in November 2019. The company has been operating in North Carolina since 2020 when it established its U.S. distribution headquarters under the name North Lily Foods, Inc.
Canadian grain farmers who are owed money by GFI are asked to contact the Canadian Grain Commission immediately through its website or by calling 1-800-853-6705 or 204-984-0506.
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