December 2, 2019
AgMedica, a Chatham, Ontario-based licensed cannabis producer, obtained protection under the CCAA on December 2. In anticipation of a potential IPO, the company devoted significant amounts of capital to expansion efforts in order to keep pace with other licensed producers in a highly competitive and capital intensive industry. As a result of changing market sentiments towards the cannabis industry, however, the IPO did not transpire. As an alternative, the company was in talks to secure a substantial debt financing package, but the potential lender also backed away. With no liquidity to fund ongoing operations, the company will look to run a sales and investment solicitation process while under creditor protection. EY is the monitor. Counsel is TGF for the company, McCarthy Tétrault for the monitor, Foglers for DIP lender Hillmount Capital and BLG for Stabilis.