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

Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.

Click here for a guide on disabling your adblocker.

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

Subscribe I am already a subscriber

Heritage Cannabis obtains creditor protection to pursue restructuring and sales process

Heritage Cannabis announced that the company 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 (the "CCAA").

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 in full of certain indebtedness owing by the Heritage Group to the Lender in the amount of $8,421,088.87, excluding legal fees of the Lender's counsel.

The Initial Order includes, among other things: (i) a stay of proceedings in favor of the company and its Canadian subsidiaries and (ii) the appointment of KPMG Inc. as monitor of the company. The Initial Order also extends the stay of proceedings to certain U.S. affiliates of the company who are not applicants in the CCAA proceedings.

The board of directors of the company will remain in place, and management will remain responsible for the day-to-day operations of the company under the general oversight of the monitor.

Heritage intends to seek approval of a sale and investment solicitation process (the "SISP"), 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 (the "CSE") 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.

For more information:
Heritage Cannabis Holdings

Publication date: