9869247 Canada Limited (d.b.a. Safari Flower Company) and GN Ventures Ltd., CCAA

9869247 Canada Limited (d.b.a. Safari Flower Company) and GN Ventures Ltd. (collectively, the “Safari Flower Group”), a Fort Erie, Ontario-based licensed cultivator and processor of cannabis, obtained CCAA protection on January 12, listing over $55 million in liabilities.

The Safari Flower Group is licensed by Health Canada and holds international certifications permitting it to supply cannabis to the European, Israeli and Australian medicinal cannabis markets. It operates from a state-of-the-art, 59,000 square foot indoor facility located in Fort Erie, Ontario.

Although the Safari Flower Group was cash positive at its year-end in 2021, it has been unable to maintain profitability mainly due to the domestic price compression arising from the oversupply of cannabis in the Canadian market. It obtained its international certifications in part to overcome these restraints, but was unable to return to profitability.

The Safari Flower Group intends to use the restructuring process to effect an RVO transaction with one of its secured lenders. Next Edge General Partner (Ontario) Inc., in its capacity as general partner of NE SPC II LP, will be providing a DIP loan. 

EY is the monitor.

Counsel is Miller Thomson for Safari Flower Group, Gowling WLG for the monitor, Harrison Pensa for Gray Jay Estates Inc., and Chaitons for the DIP lender.

By: Dina Milivojevic