Purebread's Coho receives demand letter from BMO

Executive Summary

• Purebread Brands’ subsidiary, Coho Acquisition Corp., received a demand letter from Bank of Montreal for immediate payment of $5,209,930 covering revolving and non‑revolving loans plus a corporate credit card facility.
• The bank also issued a notice of intention to enforce security under the Bankruptcy and Insolvency Act, with enforcement prohibited until Oct. 14 2025 unless consent is given earlier.
• Purebread is exploring recapitalization, refinancing, or third‑party assumption/purchase of the obligations and will issue further updates as required.

Key Details

• Demand Amount: $5,209,930 owed under a letter of agreement dated June 28 2023 (as amended).
• Loan Composition: Revolving operating demand loan, non‑revolving demand loan, and corporate credit card facility.
• Security Enforcement Notice: Bank of Montreal filed a notice to enforce security on all property of Purebread Bakery pursuant to the Bankruptcy and Insolvency Act (Canada).
• Enforcement Timeline: Security cannot be enforced until Oct. 14 2025 unless the borrower consents to earlier enforcement (per Section 244(1) of the Act).
• Potential Remedies: Company is evaluating a recapitalization, refinancing transaction, or third‑party assumption/purchase of the outstanding obligations.
• Future Disclosure: Purebread will provide updates when further disclosure becomes required or appropriate.

Notable Quotes

(No direct quotes were provided in the release.)