June 24, 2022
Sproutly Inc. and its wholly-owned subsidiary, Toronto Herbal Remedies Inc., an Ontario-based cannabis company, obtained an initial order under the CCAA on June 24. Sproutly Inc. is a wholly-owned subsidiary of Sproutly Canada Inc., a publicly traded corporation on the Canadian National Stock Exchange that is not an applicant in the CCAA proceedings. Sproutly Inc. does not directly hold any tangible assets, but wholly owns Toronto Herbal Remedies Inc. (“THR”), the other applicant in the CCAA proceedings. THR was the operating entity and holds the applicants’ primary assets, including the Health Canada cannabis licence. The applicants have incurred significant losses to date and had a reduction of sales in 2021 and nominal sales in 2022, which is attributed to Sproutly Canada Inc. exiting the flower cultivation business and shifting its resources to research and development. BDO was appointed monitor. Counsel is TGF for the applicants, Affleck Greene McMurtry for the monitor and Loopstra Nixon for 0982244 B.C. Ltd. o/a as Isle of Mann Property Group.
By Dina Milivojevic