Nabis Holdings Inc. (CSE:NAB), a Canadian investment issuer that invests in high quality cash flowing assets across multiple industries, including real property and all aspects of the U.S. and international cannabis sector, filed a proposal on November 23 after entering into a support agreement with certain holders of the company's outstanding unsecured convertible debentures in the amount of $35.0 million. Pursuant to this support agreement, the holders have agreed to support a recapitalization plan for the company which will be implemented pursuant to a BIA proposal. Previously, the company announced that Odyssey Trust Company commenced legal action against the company alleging a breach of the terms of the debentures as a result of a missed interest payment. In light of the company's liquidity constraints, the company believes that the recapitalization, including the proposal and support agreement, are in the best interest of the company and its stakeholders. KSV is the proposal trustee. Counsel is McMillan for the company, Bennett Jones for the debenture holders and Chaitons for the proposal trustee.
Exponential Group, a group of early stage companies in the business of investing in other other startup companies primarily in the financial technology sector, were placed in receivership on November 4 on application by 2444467 Ontario Inc. ("JT HoldCo") and James Town. From the Group's inception, JT HoldCo has provided the substantial majority of the Group's operational funding. ExV Inc., one of the companies in the Group, owes approximately $3.1 million to JT HoldCo. As the principals of the Group are currently unable to agree on anything regarding the management and operations of the business, they require the assistance of a receiver. MNP has been appointed receiver. Counsel is Paliare Roland for the applicants, Chaitons for the receiver and Bennett Jones for James Wallace McCreary.
Curexe Inc., a Toronto, Ontario-based company that provides online payment processing services to merchants operating in a variety of sectors and industries, was placed in liquidation on November 2 on application by SmartPay Inc. ("SmartPay"), which owns all of the issued and outstanding shares of the company. Pursuant to a Memorandum of Understanding, the company pays SmartPay the net fees received from its clients in return for SmartPay providing all of the "back room" services required for the company to provide services to its clients. Around June, the company's deposit accounts with Luminus Financial Services & Savings Credit Union Limited ("Luminus") were inexplicably frozen and, as a result, the company has been unable to carry on business in the ordinary course. SmartPay believes it is in the best interests of the company's clients to liquidate the company so that the funds held by Luminus can be distributed in an orderly fashion. MNP was appointed liquidator. Gowling WLG is counsel to the applicant.
Centre City Real Estate Inc. (o/a Re/Max Centre City Realty Inc.) ("Centre City"), a Re/Max franchisee operating in Prince George, BC, and It'll Be Good Hold Co Inc., a holding company, were placed in receivership on October 30 on application by TD, owed approximately $1.2 million. TD, which has only received one payment against the companies' indebtedness since January 2020, entered into a forbearance agreement under which the companies agreed to repay their indebtedness before June. However, the companies failed to do so and consequently defaulted under the forbearance agreement. Furthermore, the companies could not secure any refinancing or investment during the forbearance period and have similarly been unable to do so since the expiry of its term. In October, Centre City's landlord issued a notice of termination of their lease and claimed for the arrears and the present value of all future rent payments over the unexpired portion of the term. MNP was appointed receiver. Owen Bird is counsel to the applicant.
Creditloans Canada Financing Inc. (o/a "Progressa") and Creditloans Canada Capital Inc. (“Capital Inc.”) obtained protection under the CCAA on September 30, listing approximately $67.0 million in liabilities and $47.0 million in assets. Progressa is a Vancouver, British Columbia-based company primarily engaged in servicing consumer loans through an online medium to individuals unable to secure loans from traditional sources. Capital Inc. — which has no active business or operations — was incorporated for the sole purpose of issuing bonds, the proceeds of which are advanced to Progressa. As a result of the COVID-19 pandemic, Progressa experienced a significant reduction in originations of new loans that severely impacted its cash flow. The companies have sought a stay of proceedings under the CCAA in order to obtain interim financing and continue lending operations while working with its stakeholders to formulate a restructuring plan that will maximize asset value. During these CCAA proceedings, the companies will be receiving up to $2.5 million in DIP financing. BDO was appointed monitor. Counsel is McMillan for the companies, Fasken for the monitor, and Blakes for the proposed DIP lender.
110-112 Avenue Road, 114 Avenue Road, and 116 Avenue Road, properties in Toronto, Ontario which are owned by Yorkville Central Investments Inc., Yorkville Central 2 Investments Inc. and Yorkville Central 3 Investments Inc., were placed in receivership on September 11 on application by Cameron Stephens Mortgage Capital Ltd., owed approximately $12.5 million. GC Capital Inc., which holds a second mortgage on the properties, is also owed $2.6 million. RSM Canada was appointed receiver. SC Land Inc. has expressed interest to the receiver in being a stalking horse bidder for the properties. Counsel is Garfinkle Biderman for the applicant, Bennett Jones for the companies, Teplitsky, Colson for SC Land Inc., and Kagan Shastri for GC Capital Inc.
Vert Infrastructure Ltd. (CSE:VVV), a holding company which provides funding, infrastructure, and branding to affiliated licenced cannabis and hemp growers and extractors in the US, was placed in receivership on June 16 on application by KW Capital Partners Limited, owed approximately $5.2 million as the agent on behalf of the company's secured lenders. It is alleged that the company transferred money to its most significant subsidiary, Elite Ventures Group LLP, for the purposes of developing certain real property interests in Nevada, US. Currently, the applicant is seeking the appointment of a receiver to investigate whether the transfer of funds from Elite to other parties for no consideration constitutes a transaction at undervalue. The company's most recent interim financial statements indicate that it has a cash balance of under $2,000 and a shareholders' deficit of more than $22.0 million. KSV Advisory was appointed receiver. Garfinkle Biderman is counsel to the applicant.
Stableview Asset Management Inc., Stableview Yield & Growth Fund, Stableview Progressive Growth Fund, Stableview Insight Fund LP and Stableview Insight Fund GP Inc. (collectively, the “Stableview Group”), a Toronto, Ontario-based financial asset management firm, was placed into receivership on June 9 on application by the Ontario Securities Commission (the "OSC"). In January 2019, an OSC compliance review found that the Stableview Group — along with its sole director and officer — engaged in conduct that breached the Securities Act in a number of fundamental ways, including causing the funds to become significantly over-concentrated in investments of a penny stock named Clarocity Corp. Although Clarocity's financial circumstances deteriorated during the period the Stableview Group invested in the company, Stableview continued to direct investments into Clarocity. The investments subsequently caused the funds to breach their investment restrictions. As a result of these breaches, in November 2019, the OSC imposed conditions on the Stableview Group's registrations with the OSC, including trading and financial restrictions as well as prohibitions on redemptions without approval. Since those steps were taken, however, the OSC alleges that the Stableview Group and its sole director and officer continue to engage in misconduct. A receivership proceeding was initiated in an attempt to protect investors' interests while investigation and enforcement efforts continue. Grant Thornton was appointed receiver and manager. Counsel is Chaitons for the receiver and Wright Temelini for the Stableview Group.
First Hamilton Holdings Inc., a Toronto, Ontario-based investment corporation specializing in high yield bonds, along with its subsidiaries, was placed in liquidation on May 21, listing approximately $34.0 million in liabilities. The company, whose business is closely related to PACE Securities Corp. ("PSC"), attributes its financial difficulties to various factors, including the COVID-19 pandemic, which resulted in the company having to respond to margin calls by Laurentian Bank Securities ("LBS"), PSC's carrying broker and the custodian of the securities of the company's clients. While the company was able to reach certain arrangements with LBS in April, the company was required to liquidate significant portions of its portfolio of corporate bonds to meet LBS' new margin requirements. This reduction in the assets of the company's portfolio meant lower interest income from the corporate bonds which it held. The company was also forced to sell its corporate bonds at prices substantially less than their acquisition costs. MNP was appointed liquidator. Dickinson Wright is counsel to the companies.
HyperBlock (CSE:HYPR), a Toronto, Ontario-based company that operated one of the largest cryptocurrency mines in North America, filed for bankruptcy on May 19, listing approximately $10.4 million in liabilities, including approximately $5.0 million to Project Spokane and $2.8 million to Sean Walsh. On May 14, the company's electricity provider terminated its long-term power contract with the company. This termination, combined with the impact of the recent Bitcoin algorithm halving which cut the company's mining rewards in half, and the company's generally deteriorating working capital position, made it unable and uneconomical to continue operations. Crowe Soberman is the bankruptcy trustee.