Cannabis producer Blizza Brands files NOI amid CRA licence dispute

Blizza Brands Inc., a federally licensed cannabis cultivator and processor based in London, Ontario, filed a notice of intention to make a proposal on June 23, 2026, after escalating Canada Revenue Agency enforcement activity placed its excise licence, bank accounts and operating assets at risk.

Blizza produces and sells recreational cannabis through provincial wholesalers, including the Ontario Cannabis Store, and markets products under brands including VOLO, OP, KWALL, Deep Value and KEFF. The company also conducts wholesale cannabis sales and processing work for other industry participants.

The company owns a facility at 371 Neptune Crescent containing approximately 9,000 square feet of indoor cultivation and processing space. It had 8 full-time employees and 2 independent contractors when the proceedings began. Blizza’s internal statements showed assets with a book value of approximately $5.4 million as of May 31, including approximately $2.9 million of property and equipment and $2 million of inventory. Cash was approximately $43,000, accounts receivable were approximately $25,000 and a further $120,000 was held as a CRA bond deposit.

The company reported approximately $1.44 million in unsecured obligations, including about $599,196 owed to CRA. Its creditor package lists total claims of $1,436,487.76. Blizza also has a mortgage loan with an original principal amount of $1.1 million secured by a first-ranking charge against its London facility. The loan matures on October 19, 2026 and bears interest at 13% through monthly interest-only payments.

Blizza attributed its financial difficulties to deficiencies in its finance and accounting functions beginning around 2024, which caused delays and inaccuracies in tax reporting, remittances and regulatory compliance. Audits, assessments and penalties followed. The company said those problems were compounded by cannabis-sector taxation, compressed margins, intense competition and liquidity pressure, while excise duties frequently became payable before Blizza collected the related customer receivables.

CRA’s response intensified during the weeks before the filing. On May 13, it renewed Blizza’s excise licence for only 1 month, from May 16 to June 15, and described the renewal as final unless Blizza complied with its filing and payment obligations, prevented further arrears and paid down existing excise debt. On June 15, CRA advised that the licence would not be renewed and would be cancelled effective June 16. CRA officers attended the facility the next day, where certain cannabis inventory, plants and genetics were destroyed.

CRA also registered three tax liens against the facility on June 16. It later issued requirements to pay to the OCS and other recipients, while garnishment measures froze Blizza’s principal Bank of Montreal operating accounts.

Following negotiations, CRA extended the excise licence from June 19 to June 30, subject to restrictions that prohibited cultivation, processing, packaging, stamping and sales. Blizza was also required to pay all current balances and arrears, file outstanding returns and provide an additional $16,000 of financial security. CRA warned that cannabis and remaining excise stamps would be destroyed if the requirements were not satisfied.

Blizza commenced the NOI proceeding to preserve its Health Canada and excise licences while it evaluates restructuring alternatives and develops a proposal for creditors.

Ethos Advisory/Goldhar & Associates is the proposal trustee. Counsel is Miller Thomson for Blizza and Dickinson Wright for the proposal trustee.