Heritage Cannabis said it and its subsidiaries have obtained an order for creditor protection from the Ontario Superior Court of Justice.
The difficult but necessary decision to commence CCAA proceedings was made after careful consideration of the company’s financial position, while evaluating all available alternatives and engaging in significant consultation with legal and financial advisors. Additionally, on April 1, 2024, the company’s senior secured lender, BJK Holdings Ltd., made a demand to the company for payment of debts totaling CAD$8,421,088.87.
The order includes, among other things: a stay of proceedings in favor of the company and its Canadian subsidiaries; and the appointment of KPMG Inc. as monitor of the company. The company's board will remain in place and management will remain responsible for the day-to-day operations of the company.
Heritage intends to seek approval of a sale and investment solicitation process, which, if approved, would allow interested parties to participate in the process in accordance with the SISP procedures. Additional details in respect of the SISP will be disclosed in due course.
It is anticipated that the Canadian Securities Exchange will place the company under delisting review and that there can be no assurance as to the outcome of such review or the continued qualification for listing on the CSE.
