Alberta cannabis producers obtain CCAA protection amid CRA licence threat

Massive Hash Factory Ltd., CannMart Inc. and ANC Inc., Alberta cannabis producers operating within the Simply Solventless Concentrates corporate group, obtained initial protection under the Companies’ Creditors Arrangement Act on February 27, 2026, after non-payment of excise tax arrears put the companies’ cannabis licences in jeopardy.

The companies are privately-owned cannabis producers that participate in both domestic and international adult use and wholesale markets. The companies are part of a corporate group controlled by Simply Solventless Concentrates Ltd., a TSX Venture Exchange listed company trading under the symbol HASH.

Management attributes the companies’ financial pressures in part to market conditions in the regulated cannabis sector, including lower than expected wholesale and retail prices and the significant burden of excise taxes, with duties often representing 30-40% of gross revenue for producers.

Those industry pressures were compounded by a growing tax liability to Canada Revenue Agency. The companies accumulated approximately $10 million in tax arrears while remitting approximately $11.5 million toward their excise duty obligations in 2025.

The situation escalated in January 2026 when CRA issued warning letters requiring immediate payment of approximately $775,000 in excise tax for December 2025 and roughly $750,000 for January 2026 as a condition for renewing the companies’ cannabis licences beyond February 28, 2026. Without those licences, the companies would be prohibited from cultivating, processing, or packaging cannabis products and would lose the ability to possess or sell unstamped inventory. Management warned that such enforcement would effectively eliminate all revenue streams and render the businesses non-operational.

Faced with those regulatory and liquidity pressures, the companies turned to the CCAA process to preserve operations while pursuing a restructuring transaction. The purpose of the CCAA proceedings is to conduct a court-supervised sale and investment solicitation process aimed at maximizing value for creditors.

MNP is the monitor. Counsel includes Stikeman Elliott for the companies, Cassels for the monitor, HGA Law for Altek Acquisition Partnership, McLennan Ross for Cannaworks, and BLG for Massive Hash Factory.