Cloud DX (TSX-V:CDX, OTCQB:CDXFF) announced on Monday the sale of its wholly owned subsidiary, Cloud Diagnostics Canada ULC, completing a court-approved restructuring process.

The transaction follows the notice of intention to make a proposal (NOI) proceeding disclosed in June 2024 and carried out under a Subscription Agreement and a reverse vesting order (RVO) issued by the Supreme Court of British Columbia in November.

As part of the deal, Cloud Diagnostics Canada ULC issued new shares that were purchased by 1493907 B.C. Ltd., making the purchaser the sole shareholder of the company. Pre-existing shares and related rights were canceled with no consideration, Cloud DX (TSX-V:CDX, OTCQB:CDXFF) said in a statement.

Additionally, a new entity, 16538363 Canada Ltd., was created to assume certain excluded liabilities of Cloud Diagnostics Canada. The newly formed entity is expected to be assigned into bankruptcy under Canada's Bankruptcy and Insolvency Act.

The sale aligns with Cloud DX (TSX-V:CDX, OTCQB:CDXFF)'s efforts to restructure operations under its NOI proceeding and to streamline its focus on core business activities.