On January 30, 2026, the Ontario Superior Court of Justice (Commercial List) granted an Initial Order under the Companies’ Creditors Arrangement Act in favour of Ayurcann Holdings Corp. and its wholly-owned operating subsidiary, Ayurcann Inc. Alvarez & Marsal Canada Inc. was appointed as monitor.

Ayurcann Holdings Corp. is an Ontario corporation and a reporting issuer listed on the Canadian Securities Exchange under the symbol AYUR and cross-listed on the Frankfurt Stock Exchange under the symbol 3ZQ0. Ayurcann Inc., incorporated under the Canada Business Corporations Act, conducts substantially all operating activities. It is a licensed cannabis processor specializing in extraction, formulation, packaging, and distribution of derivative cannabis products, including vapes, pre-rolls, and extracts. The company markets products under proprietary brands including Fuego, Xplor, and Happy & Stoned, with more than 37,315 product listings across multiple Canadian provinces and territories.

Operations are centered at a 13,585 square foot licensed extraction and manufacturing facility in Pickering, Ontario, leased under three agreements with Com ’53 Ltd. The companies are current on rent obligations under those leases.

As at December 31, 2025, the Applicants reported consolidated assets of approximately $11.0 million and consolidated liabilities of approximately $15.5 million. The primary source of financial distress stems from unpaid federal excise taxes and related statutory obligations. As of January 26, 2026, Ayurcann owed the Canada Revenue Agency approximately $10.6 million, comprised of excise duties, statutory remittances, interest, and penalties.

From February 2025 onward, the company operated under a verbal CRA payment arrangement requiring monthly payments of approximately $165,000. That arrangement was unilaterally replaced in December 2025 when the CRA imposed a revised payment plan requiring monthly catch-up payments of approximately $1.1 million for six months, in addition to ongoing monthly excise obligations of approximately $1.9 million. The resulting combined monthly requirement of approximately $3 million exceeded the company’s available liquidity.

In parallel, the companies reported approximately $1.6 million owing to third-party suppliers, as well as approximately $285,649 owing to Health Canada under an agreed payment plan. Secured obligations are limited.

The Court noted that absent relief, the companies would be unable to meet imminent CRA payment demands, including a payment of approximately $2.6 million due January 31, 2026.

Alvarez & Marsal is the monitor. Counsel is Bennett Jones for the companies and Reconstruct for the monitor.