October 29, 2019

Filing Type:

Trustee: FTI

Trustee Counsel: Bennett Jones

Applicant: GLAS Americas

Applicant Counsel: Dentons

Industry:

Province:

DionyMed Brands (CSE: DYME), a Vancouver, British Columbia-based cannabis company, was placed in receivership on October 29 on application by GLAS Americas, owed, together with certain other lenders, approximately $24.8 million. The company generated its revenue primarily in the United States, selling a portfolio of wholly-owned and third-party brands to over 800 retail dispensaries in California, Oregon and Nevada, as well as providing a direct-to-consumer cannabis delivery service. Despite strong growth, the company was unprofitable; in the first 6 months of the year it recorded a negative operating cash flow of $17.2 million on $34.4 million of revenue. Efforts in recent months to raise additional capital were unsuccessful and the company's secured lenders were unwilling to provide additional funds without a court-supervised process geared to obtaining a permanent solution to the company's capital structure and indebtedness. FTI was appointed receiver. Counsel is Dentons for the applicant, Bennett Jones for the receiver, Stikeman Elliott for SP1 Credit Fund and Blakes for an ad hoc group of bondholders.

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