Beleave Inc. (CSE:BE, OTCQX:BLEVF), a licensed producer and seller of cannabis and cannabis related products, along with certain affiliates (collectively, the "Beleave Group"), obtained protection under the CCAA on June 5, listing over $18.0 million in liabilities. The Beleave Group, which sells to five Canadian provinces, has experienced negative cash flow since its inception. In particular, it spent significant resources to construct and expand the processing capacity at its production facility in Hamilton, Ontario. Although the Beleave Group has pursued a number of strategic initiatives to improve its financial position, certain of these initiatives have been unsuccessful, including efforts to sell its cannabis licence. Unless CCAA proceedings are implemented, the Beleave Group will not be able to continue operating. The Beleave Group intends to commence a stalking horse sale process in order to sell its assets and operations for the benefit of its creditors and other stakeholders. Grant Thornton was appointed monitor. Counsel is Miller Thomson for the Beleave Group and Fasken for the monitor.
Destiny Bioscience Global Corp., a Nisku, Alberta-based cannabis genetics and tissue culture research and development company — along with its subsidiaries — were placed in receivership on May 22 on application by Synergy Projects (Destiny) Ltd. and Synergy Projects Ltd. The Bowra Group was appointed receiver. DLA Piper is counsel to the companies.
Green Growth Brands Inc., GGB Canada Inc., Green Growth Brands Realty Ltd. and Xanthic Biopharma Limited (collectively, the "GGB Group") (GGB:CNX), a cannabis enterprise that is licensed to grow, process and sell cannabis in various US jurisdictions, obtained protection under the CCAA on May 20, listing over $100.0 million (USD) in liabilities. The GGB Group, which was funded through equity and debt, has always been cash flow negative. Commencing in early 2019, the Group began to experience liquidity issues. These problems were compounded by the COVID-19 pandemic, and the GGB Group was forced to indefinitely suspend its business selling CBD-infused consumer products. All Js Greenspace, one of GGB Group's existing secured lenders, will be providing up to $7.2 million (USD) in DIP funding during these CCAA proceedings. EY was appointed monitor. Counsel is Stikeman Elliott for the companies, Osler for the monitor, and McMillan for All Js Greenspace.
Muskoka Grown, a Bracebridge, Ontario-based craft cannabis company, filed an NOI on May 5, listing approximately $15.5 million in liabilities, including $2.2 million to RBC. The company, which has been cash flow negative since its inception, is currently operating at unsustainable monthly losses and has reached the limit of its revolving operating loan with RBC. In addition, the lack of brick-and-mortar stores in Ontario as a result of the COVID-19 pandemic hindered up-front sales from the Ontario Cannabis Store and led to the company needing to sell its cannabis through the wholesale market at lower margins. Based on cash availability, the company is currently unable to pay for the testing and certification required to sell dried cannabis; pay its employees; and fund general overhead expenses of the business. Without additional funding and protection from its creditors, the company will have no choice but to immediately cease operations. Arthur Zwingenberger, owed approximately $5.2 million in outstanding mortgage loan principal and interest, supports the NOI proceeding and has agreed to provide up to $4.0 million in DIP financing to the company. Farber is the proposal trustee. Bennett Jones is counsel to the company.
James E. Wagner Cultivation Corporation (TSX:JWCA), a Kitchener, Ontario-based licensed cannabis producer focused on producing clean cannabis using a proprietary aeroponic platform called GrowthSTORM, obtained protection under the CCAA on April 1, listing approximately $41.0 million in liabilities. Since its inception, the company has been cash flow negative and has relied on equity and debt financing for funding. The company now requires additional funding after it expended significant resources to expand its cannabis production and processing capacity as part of a strategy to achieve profitability. During the CCAA proceedings, Trichome Financial will be providing DIP financing. KSV was appointed monitor. Counsel is Davies for the monitor, Torys for Trichome, Bennett Jones as the company's insolvency counsel and DLA Piper as the company's corporate counsel.
CannTrust Holdings (TSX:TRST), a cannabis producer in Canada with production and processing facilities in Fenwick and Vaughan, Ontario, along with its subsidiaries CannTrust, CTI Holdings (Osoyoos) and Elmcliffe Investments, obtained protection under the CCAA on March 31. Following regulatory audits of the company's facilities in June and July 2019, Health Canada determined that the company was growing and storing cannabis contrary to applicable laws. Subsequently, Health Canada suspended the company's licences so that it can no longer propagate new batches of cannabis. Multiple putative securities class actions were also commenced in Canada and the US against the company, seeking aggregate damages of at least $500.0 million. Despite efforts to address Health Canada's findings and concerns by implementing a remediation plan, the company has had no revenue since July 2019 and recent global developments - including an oil price shock and the COVID-19 pandemic - have made it even more difficult for the company to attract new financing or strategic partners. EY was appointed monitor. FTI is the Chief Restructuring Officer of the companies. Counsel is McCarthy Tétrault for the companies, Aird & Berlis for the monitor, and Goldman, Spring, Kichler & Sanders for CannTrust Holdings.
Pure Global Cannabis (TSXV:PURE), which is engaged in the production and sale of cannabis products in Canada with its subsidiaries (collectively, "Pure Global Group"), obtained protection under the CCAA on March 19. Pure Global Group's primary assets are two real properties in Brampton, Ontario owned by its subsidiaries, 237A Advance and 237B Advance, on which the group's production and warehouse facilities are located (the "Brampton Properties"). In 2018, the company and its primary operating subsidiary, PureSine, issued secured debentures and entered into a collateral agency agreement with Cancor Debt Agency. A year later, the group's precarious liquidity situation caused it to miss a payment that was due under the debentures that the company had issued to certain debenture holders. The group also defaulted on its vendor take back-mortgages for the Brampton Properties. Without a stay of proceedings and interim financing, Pure Global Group will face a complete cessation of its operations. During the CCAA proceedings, Hillmount Capital will be providing DIP financing. EY was appointed monitor. Counsel is Weisz Fell Kour for the company, Osler for the monitor, Cassels for 2056706 Ontario in respect to 237A Advance, Keyser Mason Ball for Kozo Holdings in respect to 237B Advance, McMillan for Cancor Debt Agency, and Fred Tayar & Associates for Hillmount Capital.
Green Relief, a Hamilton, Ontario-based cannabis producer, filed an NOI on March 11, listing approximately $9.7 million in liabilities, including $1.0 million to Cannoleum and $1.9 million to Schilthuis Construction. In early 2019, the company's co-founder and CEO stepped down, and a subsequent forensic investigation initiated by new management revealed that over $14.0 million had allegedly been misappropriated, and the company is now facing a severe liquidity crisis. PwC is the proposal trustee. Counsel is TGF for the company and DLA Piper for the proposal trustee.
Eureka 93 (CSE:ERKA), an Ottawa, Ontario-based cannabis company that operates one of the largest hemp cultivation and CBD extraction operations in North America, along with its subsidiaries - Artiva, LiveWell Foods Canada, and Vitality CBD Natural Health Products (collectively, the "Group") - filed an NOI on February 14, listing approximately $28.2 million in liabilities. At the end of December 2017, Artiva, Eureka 93's only operating company, acquired a large vegetable farm that it intended to retrofit for the cultivation, processing, and distribution of cannabis, but it has run out of cash and cannot complete construction. Believing that its business will become viable once construction is complete and production begins, the company filed for creditor protection in order to, among other things, obtain interim financing and simplify its capital structure. Deloitte is the proposal trustee. Counsel is Gowling WLG for the Group, Blaney McMurtry for the proposal trustee and Bennett Jones for a group of secured noteholders.
Invictus MD Strategies (TSX-V: GENE), a Vancouver, British Columbia-based cannabis company, along with certain other related companies, obtained protection under the CCAA on February 13. Several factors contributed to the company's liquidity issues. First, it was unsuccessful in obtaining additional financing to complete a custom-built cultivation facility. Second, the strains of cannabis that are currently being harvested by Acreage - the company's primary operating entity - are not in demand as they do not have sufficient potency. While Acreage is currently in the process of changing over its plants to those with a higher level of potency, these plants will not be ready to harvest until mid-April 2020. Finally, the company's revenues have decreased due, in part, to lower consumer demand and market saturation. The company currently owes approximately $10.6 million to ATB Financial and $5.3 million to Authentic Brands, a New York-based brand management company. PwC was appointed monitor. Counsel is Cassels for the company, BLG for the monitor and Blakes for ATB.