Atalo Holdings, based out Winchester, was one of Kentucky’s first to enter the industry. The industrial hemp processing company filed for Chapter 7 bankruptcy, striking a big blow for Clark County.
After being forced to tread water after a failed capital commitment, the company was unable to pay its creditors, according to their CEO, Bill Hilliard. The company markets hemp superfoods and farm fresh hemp CBD. Other obstacles that lead to the company’s demise include “’confounding guidance’ from regulatory agencies, unforeseen market forces and other challenges.”
By using Chapter 7 bankruptcy protection, the debtor, Atalo Holdings, will sell their assets to pay creditors.
Andy Graves, the Atalo Chairman, said in the release that it was devastating that the company was unable to pay creditors or provide a return for their shareholders. He is confident, however, that the company’s experience, genetics, and partners would also give new investors an attractive opportunity. He and other company officials hope to continue operations during the bankruptcy proceedings.
The filing states that the company estimated its liabilities between $1 million and $10 million. The assets for the company were estimated at between $10 million and $50 million.
According to its website, Atalo “focuses on developing reliable pathways to market for consistent hemp CBD, superfood and fiber,”
“Over the past six years, we have developed enviable seed science and supported one of the largest rosters of Kentucky farmers seeking a tobacco alternative,” Hilliard said in the release.
This is not the only cannabis company to go bust this year. Another Winchester based processor, GenCanna filed Chapter 11 last month. While Sunstrand also filed for Chapter 7 bankruptcy earlier in the year.