Item 2.06 Material Impairments.
This Amendment on Form 8-K/A (the "Amendment") amends the Current Report on Form
8-K filed on January 21, 2021 (the "Prior Report") by Pyxus International, Inc.
(the "Company") with respect to the applications on January 21, 2021 by Canada's
Island Garden Inc. ("FIGR East"), FIGR Norfolk Inc. ("FIGR Norfolk") and FIGR
Brands, Inc. (together with FIGR East and FIGR Norfolk, the "Canadian Cannabis
Subsidiaries"), which at such time were indirect subsidiaries of the Company,
for relief from their respective creditors pursuant to Canada's Companies'
Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial
List) in Ontario, Canada (the "CCAA Proceeding"). In connection with and
contemporaneous with the commencement of the CCAA Proceeding, the Company
concluded that it would incur a material non-cash charge with respect to its
investments in and advances to the Canadian Cannabis Subsidiaries. At the time
of the filing of the Prior Report, the Company was unable to estimate the total
amount or range of amounts of this charge. The Company made a determination of
such information on June 25, 2021, and this Amendment is being filed to report
such information.
The Company expects that the total charge with respect to its investments in and
advances to the Canadian Cannabis Subsidiaries will be within a range of
approximately $63.2 million to $77.3 million, which is a non-cash charge to be
recognized in the quarter ended March 31, 2021.
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