October 17, 2022
Flower One Holdings Inc., FO Labour Management Ltd. and Flower One Corp. (collectively the “Companies”), Nevada's largest licensed producer of cannabis with a registered office located in Vancouver, British Columbia, obtained CCAA protection on October 17. For the past few years, the Companies have experienced various challenges including, among other things: (1) production issues impacting both quality and quantity produced at the Companies' facilities; (2) margin compression caused by increased market competition and a lack of vertical integration; (3) significant debt service costs (with approximately $6 million due before the end of the year); and (4) corporate overhead costs, including the financial burden associated with being a publicly traded company. The Companies' financial challenges have been compounded by a significant reduction in product sales due to decreased tourism in Las Vegas as a result of the COVID-19 pandemic, which reduced demand. PwC was appointed Monitor. Counsel is Blakes for the Companies and McCarthy's for the Monitor.
By Dina Milivojevic