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As the Canadian cannabis industry continued to weather financial headwinds in 2024, numerous companies found themselves entering creditor protection, closing up shop, or selling off assets. Here’s a brief breakdown.
In January 2024, a court-appointed monitor of Trees Corporation, which operates a chain of cannabis stores in BC and Ontario, announced it was conducting a sale and investment solicitation process for the cannabis company.
Safari Flower entered CCAA protection in January 2024 and successfully exited creditor protection in September 2024.
On February 20, Hamilton, Ontario-based cannabis companies Wayne Patrick Consumer Products Ltd. and WPCP Ltd. had their Notice of Intent proceedings continued under the CCAA. The issue remains ongoing.
BZAM was granted CCAA protection in February to restructure its business and financial affairs. The issue is ongoing, with the most recent stay of proceedings until January 13, 2025. Final Bell has been challenging the move in court since April 2024. In December, a court rejected Final Bell’s equity claims against BZAM’s monitor and again extended the stay of proceedings.
In April, Heritage Cannabis Holdings Corp. and its subsidiaries sought and obtained an order for creditor protection from the Ontario Superior Court of Justice pursuant to the Companies Creditors Arrangement Act (CCAA). In August, Heritage announced it had completed the sale of the company to a stalking horse bidder, HAB Cann Holdings Ltd, which is connected to Heritage’s senior secured lender, BJK Holdings Ltd.
In May, the parent companies of cannabis retail chain Four20 Premium Markets filed a notice of intent to make a proposal under the Bankruptcy and Insolvency Act. Following approval by the Court of the SISP on September 19, 2024, the Applicants commenced the SISP and the Claims Process. The issue is ongoing.
In June, Ontario’s Indiva received creditor protection, and in August, SNDL announced its successful bid to purchase Indiva.
Atlas Global Brands, the company behind cannabis brands like D*gg Lbs, GreenSeal, and Electric Lettuce, was granted an initial order under the Companies’ Creditors Arrangement Act (CCAA) in June. In October, a court approved an RVO for Atlas Global Brands against the CRA’s objections. In October, Calgary-based Decibel Cannabis Company Inc. closed on its acquisition of AgMedica Bioscience Ltd., a subsidiary of Atlas Global Brands.
In July, Delta 9 Cannabis received CCAA protection and entered into an agreement with FIKA following what it called an “aggressive” move by Delta 9 secured creditor SNDL Inc.
Galaxie Brands received CCAA protection in August and announced its exit from the process in December.
Freedom Cannabis also received creditor protection in August to pursue the restructuring and sales process.
Tokyo Smoke announced in August that it would close 29 locations as it sought creditor protection. By September, the retail chain began the Stalking Horse sale process. Tokyo Smoke emerged from creditor protection in November with around 57 “go-forward” store locations.
And finally, in November, Noya Holdings Inc. and Noya Cannabis Inc. applied for creditor protection.
Did we miss any?
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