(CNW) Toronto — Trees Corporation, today announced that the company and its subsidiaries, Ontario Cannabis Holdings Corp., Miraculo Inc., 2707461 Ontario Ltd., OCH Ontario Consulting Corp., and 11819496 Canada Inc., have received an order for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA).
The Trees Group has been actively pursuing additional financing to raise capital to fund its operations, and engaged a financial advisor to assist the Trees Group with reviewing strategic options, including financing options. Following such review and after careful consideration of all available alternatives, and consultation with legal and financial advisors, the directors of the Trees Group determined that it was is in the best interests of the Trees Group to file an application for creditor protection under the CCAA.
The Initial Order includes, among other things: (i) a stay of proceedings in favour of the Trees Group, and (ii) the appointment of Ernst & Young Inc. as the monitor of the Trees Group.
The Trees Group sought creditor protection under the CCAA in order to receive a stay of proceedings that will allow the Trees Group to work with the monitor to facilitate the development of an orderly process designed to streamline its operations and conduct a Court-supervised sales process to obtain a going concern solution for its operations and maximize the value of the Trees Group’s assets for the benefit of its stakeholders.
The board of directors of the Trees Group will remain in place and management will remain responsible for the day-to-day operations of the Trees Group, under the general oversight of the monitor.
It is anticipated that Cboe Canada will place the company under delisting review and there can be no assurance as to the outcome of such review or the continued qualification for listing on the Cboe.