CAN (BC): Small town gets ready to face local cannabis company potentially going bankrupt

The small town of Lumby in British Columbia, Canada, was happy to welcome two years ago True Leaf, a cannabis company that built a 18,000 sq.ft. growing and processing facility, but also bought 40 acres of land. The inauguration of the new business in Lumby was met with relative enthusiasm, as the plan was to bring more tax revenue and a boost to employment in the area. Yet, said hopes have been halted for a while as the company is facing potential bankruptcy. 

In a press release, the company stated how they have asked for creditor protection, the vote for which should happen by the end of this month. 

The economy of the town of Lumby might be inevitably affected, considering that the taxes paid by the company amounted to roughly more than $100,000. "The challenge with that is being a small town, that's a good bump in taxes, but also we prepay those portions to the hospital district, to the [Regional District of North Okanagan], to the fire, to the police, so all of those things have already come out of our budget. So while we wait for the taxes, it does make a little bit of a challenge for our financial planning for sure," said Mayor Kevin Acton told CBC's Daybreak South. On top of that, up to 40 jobs are at risk, provided the company won't be able to restructure. 


Publication date:
© /



Receive the daily newsletter in your email for free | Click here


Other news in this sector:


© MMJDaily.com 2020

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber