The sale of its assets to a long-term investor will allow Winchester-based GenCanna Global to continue its hemp-related operations in Kentucky, the company announced Tuesday.
The company said in a news release it has received approval from the United States Bankruptcy Court for the Eastern District of Kentucky to sell substantially all of its assets to funds managed by its long-term investor, MGG Investment Group.
Details of the sale were not released. GenCanna filed for Chapter 11 bankruptcy in February to work out a reorganization plan.
The transaction will enable GenCanna “to maintain its operations in Kentucky as a leading standalone CBD and wellness business with significantly reduced debt and substantial new capital to pursue growth opportunities,” according to the company.
What that means for GenCanna’s plans for the former AmerisourceBergen facility in Paducah, which included manufacturing, warehousing, research and retail operations, and the halted construction of the estimated $40 million hemp processing facility north of Mayfield, is not immediately clear.
Paducah City Manager Jim Arndt called the announcement potentially “great news” for the 120,000 square-foot building at 322 N. Third St.
“The city is hopeful that the owner of the facility will have great success in their endeavors,” he said.
“We look forward to seeing them create jobs in Paducah, update the facility, and occupy this downtown asset.”
As part of the sale to MGG, GenCanna has appointed Andrew Barnett as chief executive officer.
“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 said.
“Today, GenCanna is a stronger, better capitalized, and more competitive company that is poised to further its leadership position in the still emerging hemp industry.”
Barnett has served in a number of capacities overseeing the strategic, operational and financial needs of private and publicly held companies, from start-up to mature enterprises in health care and wellness, retail, manufacturing and distribution.
GenCanna, founded in 2014, is a vertically integrated agriculture-technology company specializing in the production of hemp rich in CBD.
MGG Investment Group is a private direct lending investment firm that works with mid-size and growing lower-middle market companies.