March 23, 2022
MJardin Group, Inc. (CNSX: MJAR) ("MJar"), a Toronto, Ontario-based cannabis company, had a receiver appointed over its assets (other than its cannabis assets) on March 23, on application by PwC as the receiver of Bridging Income Fund. MJar has two groups of subsidiaries. One group of subsidiaries is based out of the US and provides professional management operational and cultivation services in Canada and the US. The other group of subsidiaries is based out of Canada and is engaged in the cultivation and sale of cannabis products in Canada. In November 2017 and April 2018, Bridging advanced funds to MJar and certain of its subsidiaries. As at March 22 the total amount of the Indebtedness is $178,114,147. MJar and its subsidiaries have defaulted on various provisions of the credit facilities, including by failing to repay the indebtedness on the maturity date of April 23, 2021. PwC as the receiver of Bridging agreed to waive the defaults to allow MJar and its subsidiaries to undertake SISPs in Canada and the US. However, the SISPs failed to generate any viable offers for the MJar business despite several months of marketing efforts. KSV was appointed receiver. Counsel is TGF for PwC as the receiver of Bridging and Goodmans for KSV as the receiver of MJar.
By Dina Milivojevic