Heritage Cannabis Holdings Corp. (CSE:CANN) et al., CCAA

Heritage Cannabis Holdings Corp. (CSE:CANN) et al., a group of Ontario-based cannabis companies, obtained CCAA protection on April 2.

The companies list approximately $35 million in liabilities, including approximately $6.8 million to their senior secured lender, BJK Holdings.

When the companies initially obtained the loan in 2021, it had an initial interest rate of 3.7%. Subsequent amendments eventually increased the interest rate to 17.2% effective August 1, 2023.

To address these issues, Heritage entered into a sale and leaseback transaction with BJK for its Fort Erie, Ontario and Falkland, BC facilities.

BJK demanded payment of its debt on April 1. It has agreed to provide a DIP loan and act as stalking horse purchaser, subject to court approval.

The companies also owe over $11.7 million to CRA on account of unremitted excise tax arrears.

KPMG is the monitor.

Counsel is Chaitons for the companies (and Owens Wright as their corporate counsel), Blakes for the monitor, Gowling WLG for BJK and Aird & Berlis for the directors.

By: Dina Milivojevic