Atlas Global Announces Changes to Canadian Operations - Seite 2

Since commencing trading on the CSE in January 2023, the Company completed the acquisition of GreenSeal on April 28, 2023, a GACP & CUMCS certified indoor growing facility located in Stratford, Ontario and entered into binding agreements (collectively, the “Acquisition Agreements”) for the acquisition of controlling interests in 6 pharmacies in Israel, as well as to acquire a trading house in Tel Aviv, which will be leveraged as an export distributor for all medical pharmacies.

After an end-to end review of its global operations, including the anticipated impact of these acquisitions on operations, Alvarez & Marsal Canada ULC was engaged as financial advisor to Atlas Biotechnologies Inc., a direct wholly owned subsidiary of Atlas Global, and Atlas Growers Ltd., an indirect wholly-owned subsidiary of Atlas Global and the operator of the Gunn, Alberta facility (together, the “Atlas Subsidiaries”).

Based on that financial analysis and after careful consideration of available alternatives, the Atlas Subsidiaries’ cash positions, forecasted revenue and expenses, scheduled debt payments and demands for payment received from creditors and the operational capabilities of Atlas Global’s other business units in Ontario, it was determined to be in the best interests of the Atlas Subsidiaries and Atlas Global as a whole to liquidate the assets of the Atlas Subsidiaries, through a court-supervised process, in an orderly fashion so as to maximize recoveries for all affected stakeholders. The Atlas Subsidiaries are currently in discussions with their senior lender, with whom the Atlas Subsidiaries are working cooperatively, to determine the nature of the proceedings that will be commenced to effect this orderly liquidation.

Also, owing in material part to the number and timing of recent acquisitions and the liquidation of the Atlas Subsidiaries, the Company has determined that the forecasted gross profit and available funds for the 12 months ending December 31, 2023, in its amended and restated filing statement dated December 29, 2022, should no longer be relied upon. The Company will provide appropriately updated information including the disclosure prescribed by National Instrument 51-102 – Continuous Disclosure Obligations in connection with the issue of its audited financial statements for the 15-month period ended March 31, 2023, due July 31, 2023.