PUBLIC NOTICE OF UCC SALE: Indoor Cannabis Cultivating Business

UCC Public Sale Notice

Please take notice that Pack River Financial LLC, a California limited liability company (“Secured Party”) offers for sale at public auction on July 31, 2024 at 10:00 a.m. (PT), via a virtual videoconference for remote participation, in connection with a Uniform Commercial Code  (“UCC”) sale, substantially all tangible and intangible personal property, including (a) equipment; (b) inventory, accounts, security entitlements, commodity contracts and commodity accounts; (c) instruments, including promissory notes; (d) chattel paper, including tangible chattel paper and electronic chattel paper; (e) documents; (f) letter of credit rights; (g) accounts, including health-care insurance receivables; (h) deposit accounts; (i) commercial tort claims; (j) general intangibles, including payment intangibles and software; and (k) as-extracted collateral (collectively, the “Collateral”), of Veridian Partners LLC, Treetop Flyers Collective, Inc., and Canna Bay, Inc. (collectively, “Debtors”).  Debtors are generally in the business of cultivating indoor cannabis.

Veridian Partners, LLC is indebted to Secured Party in an amount of approximately $4,800,981.74 (the “Specified Veridian Obligations”), which obligation is secured by certain equipment (the “Specified Veridian Collateral”).  Additionally, Debtors are collectively indebted to Secured Party in an amount of approximately $909,808.58 (the “Group Obligations”; and together with the Specified Veridian Obligations, the “Total Secured Obligations”), which obligation is secured by the Specified Veridian Collateral and the other Collateral.  Debtors have granted to Secured Party a first-priority lien on the Collateral.

The sale of the Collateral will be subject to all applicable third-party consents and regulatory approvals, if any.  In order to participate in the sale as a “Qualified Bidder”, such bidder shall provide proof of funds demonstrating that bidder has cash immediately available in the following amounts: (i) 100% of the Specified Veridian Obligations if bidding on the Specified Veridian Collateral and (ii) 100% of the Group Obligations if bidding on Collateral other than the Specified Veridian Collateral.  Qualified Bidder must (a) obtain certification from Matthew Bouslog at [email protected] not later than 12:00 p.m. (PT) on July 26, 2024, and (b) notify the undersigned for Secured Party of its intent to bid at the sale.  Interested bidders should contact the undersigned for Secured Party in writing to obtain ACH and wire instructions.  Only Qualified Bidders will be allowed to bid at the auction.

Subject to Secured Party’s right to credit bid, Secured Party shall sell the Collateral to the Qualified Bidder posting the highest bid.  A Qualified Bidder must be virtually present at the auction in order to bid.  The Specified Veridian Collateral will be sold first, and then the remaining Collateral will be sold.  Minimum bidding increments will be $50,000.00 or such other amount as Secured Party may announce at the auction.  Higher bids will continue to be entertained until Secured Party has determined that it has received the highest bid from a Qualified Bidder.  No offers may be withdrawn once made during the auction, but no sale shall be final until accepted in writing by Secured Party.  Secured Party may announce changes in the minimum bidding increments at the auction as often as Secured Party, in its discretion, determines is appropriate.  Secured Party may, in its discretion, also choose to accept the next highest bid from a Qualified Bidder as a backup bidder.  Secured Party reserves the right to (a) reject all bids and terminate the auction or adjourn the auction to such other date and time as Secured Party may deem proper, by announcement prior to the date of the auction or at the place and on the date of the auction, and any subsequent adjournment thereof, without further publication, and (b) impose any other commercially reasonable conditions upon the sale of the Collateral as Secured Party may deem proper.  The bid amounts are exclusive of transfer and sales taxes, which each bidder covenants to pay if such bidder is the successful bidder.

The Collateral is being offered “as-is, where-is”, with no express or implied warranties, representations, statements or conditions of any kind made by the Secured Party or any person acting for or on behalf of the Secured Party, without any recourse whatsoever to the Secured Party or any other person acting for or on behalf of the Secured Party and each bidder must make its own inquiry regarding the Collateral.  The closing shall take place on or before two (2) business day following the conclusion of the auction, TIME BEING OF THE ESSENCE, at which time the successful bidder will be required to pay the amount of the winning bid plus the amount of transfer and sales tax by wire transfer or ACH payment.  The sale will be consummated immediately upon execution and delivery of closing documents and receipt of the full payment by Secured Party in immediately available funds.  The winning bidder shall be solely responsible for all shipping and transportation costs to remove the Collateral from its location and shall remove the Collateral from its location within four (4) business days of the auction, and shall indemnify, defend and hold Secured Party harmless from and against any and all damages whatsoever arising from removal of the Collateral.  Storage fees of $250 per day shall begin to accrue on the fifth business day after the auction and shall continue to accrue every calendar day thereafter.  If a successful bidder does not timely close, Secured Party may elect to close with the backup bidder.

Any interested bidder may contact Braden Butcher via e-mail at [email protected] to obtain the videoconference link to participate in the auction, or for more information regarding the sale or the Collateral.