CanadaBis obtains CCAA protection as tax arrears and debt pressure mount

CanadaBis Capital Inc. (TSXV:CANB) and four affiliated entities obtained initial protection under the Companies’ Creditors Arrangement Act in Alberta on April 17, 2026 after mounting excise tax arrears, secured debt obligations, and liquidity pressure pushed the vertically integrated cannabis group into court-supervised restructuring.

The applicants are CanadaBis Capital Inc., 1998643 Alberta Ltd., Stigma Pharmaceuticals Inc., 2103157 Alberta Ltd., and Full Spectrum Labs Ltd. According to the company, substantially all operating activity is carried out through 1998643 Alberta Ltd., including cultivation, extraction, manufacturing, processing, and cannabis product sales.

The group described itself as a vertically integrated cannabis business engaged in cultivation, extraction, product development, and sales within one corporate structure. Its principal operations include a 66,000 square foot cultivation facility in Red Deer, Alberta, with 79 full-time employees in the province.

Pressure from Canada Revenue Agency was a central catalyst for the filing. 1998643 Alberta Ltd. received a legal demand dated March 4, 2026 concerning excise liabilities of about $5.7 million, payable within 14 days. The company said CRA warned that failure to pay could result in garnishments or asset seizure. By the filing date, excise arrears had grown to about $7.6 million.

The materials also reference earlier enforcement. In January 2025, CRA issued requirements to pay to the company’s financial institution and to the Alberta Gaming, Liquor and Cannabis Commission relating to tax arrears of about $5.5 million. The company said those steps were addressed through approximately $2.1 million in payments together with subsequent garnishments.

Even after those measures, the applicants said they paid roughly $15.2 million in excise obligations during fiscal 2025 and another $4.6 million in fiscal 2026 year-to-date, but continuing liquidity constraints prevented them from remaining current.

Beyond tax debt, the group reported about $4.2 million owed to Connect First Credit Union, $4 million in unsecured convertible debentures, and nearly $1 million in trade payables.

Audited financial statements included in the affidavit show the group incurred a net loss of $835,204 and negative operating cash flow of $3.2 million for the year ended July 31, 2025. Auditors highlighted a material uncertainty related to going concern. For the three months ended October 31, 2025, CanadaBis reported net revenue of $3.3 million, gross profit of $1.5 million, and a net loss of $128,539.

The applicants said the immediate objective is to stabilize operations while pursuing a sale and investment solicitation process.

FTI is the monitor. Counsel is TGF for the applicants and Fasken for the monitor.