December 2, 2019
Wayland Group (CSE: WAYL), an Oakville, Ontario-based licensed cannabis producer, obtained protection under the CCAA on December 2. Cash flow negative from its operations since inception, the company has relied on equity and debt financing for funding. The company is in the process of expanding its flagship production facility in Langston, Ontario, but requires additional funding, which has proven extremely challenging to obtain. A cease trade order was issued in May 2019 as result of the company's failure to file its 2018 audited financial statements, and as such, the company cannot raise further funds from the issuance of securities. Without audited financial statements, it has also proven difficult to raise debt financing. Efforts have been made over the past 18 months to monetize the company's assets outside of an insolvency proceeding, but these have been unsuccessful. While under creditor protection, the company will look to complete a restructuring - either through a plan of arrangement or compromise or through a sale of its assets. PwC is the monitor. Counsel is Osler for the company, Bennett Jones for the monitor, Cassels Brock for secured lender Cryptologic and Goodmans for the company's debenture holders.