March 22, 2021
Hydrx Farms Ltd., a vertically integrated Health Canada-licensed cannabis company with a facility in Whitby, Ontario, obtained protection under the CCAA on March 22 on application by Domenico Serafino. In August 2017, the company financed its operations through the issuance of a convertible debenture from Aphria Inc. for $11.5 million and raising approximately $86.0 million in an equity financing. To date, the company has accumulated losses in excess of $55.0 million and its operations have been shut down due to liquidity problems. All of the company's employees have been laid off and only a few consultants remain with the company in order to maintain the company's license with Health Canada. In addition to the company's financial issues, it is the subject of six legal proceedings. Schwartz Levitsky Feldman Inc. was appointed monitor. Counsel is Paliare Roland for the monitor and Minden Gross for the applicant.