July 27, 2022
Speakeasy Cannabis Club Ltd. (CSE:EASY) and its wholly-owned subsidiary 10161233 Canada Ltd., cannabis companies based in Rock Creek, British Columbia, were granted CCAA protection on July 27. The companies are currently in a liquidity crisis. In May 2021, they entered into an exclusive sales agreement with Decibel Cannabis Company Inc. pursuant to which all of the companies’ sales would be made to Decibel for six months, with 25% of the purchase price being paid on delivery and the remaining 75% being paid 90 days later. In August 2021, Decibel experienced financial difficulties, resulting in product having been delivered but 75% of the purchase price remaining unpaid. In addition, the companies' secured lenders, who were expected to convert their secured loans into equity and become shareholders of the companies, instead sought repayments of the secured loans in cash. Crowe MacKay was appointed monitor. Counsel is Clark Wilson for the companies and Dentons for the monitor.
By Dina Milivojevic