November 24, 2022
Lightbox Enteprises Ltd. dba Dutch Love Cannabis, a licensor and service provider with respect to the "Dutch Love" cannabis store brand, continued its NOI proceedings (which were commenced on November 1) under the CCAA on November 24. Like many other cannabis retailers, Lightbox was negatively impacted by the challenging business climate for cannabis retail operations and the COVID-19 pandemic, which had a significant impact on both the company's sales and operations. In 2021, Lightbox retained Kronos Capital Partners Inc. and Canaccord Genuity Group Inc. to assist in selling assets to aid in its restructuring. Lightbox has negotiated three asset purchase agreements to sell to independent, third-party purchasers: (a) two unprofitable store locations in Kelowna and Lake Country; and (b) the assets related to a now closed store location in Saskatoon. Despite the pending sales, the company has been unable to restructure so as to be in a position to meet its obligations as they come due, or to broker a sale of its operations en bloc as a going concern. However, such efforts have attracted interest in a restructuring transaction from a number of prospective parties, and the company intends to run a SISP in the CCAA proceedings to maximize value for stakeholders. EY is the monitor. Counsel is McMillan for the company, Fasken for the monitor, McCarthy Tétrault for Sundial Growers, Lawson Lundell for BMO and Alpine Retail Center, Dentons for Roseterra Investments, Daoust Vukovich for Pensionfund Realty, MLT Aikins for LS Properties Meadows Market BT and Cannavore Cannabis, Koffman Kalef for Robson Promenade Holdings, Gowlings for Aquanta Group and Forthspace Cannabis and Crabtree Law for 1204393 B.C. Ltd.
By Dina Milivojevic