The Cannabist Company Holdings Inc., a Toronto-based public cannabis company that sits at the top of a US-focused cannabis group, together with Canadian subsidiary The Cannabist Company Holdings (Canada) Inc., obtained initial protection under the Companies’ Creditors Arrangement Act on March 24, 2026.
The parent company’s shares are listed on Canadian stock exchange Cboe Canada Inc. under the ticker symbol “CBST”. The companies operate across multiple jurisdictions through a network of licensed subsidiaries. The group includes 40 dispensaries and 14 cultivation and manufacturing facilities and employs approximately 1,278 people, with the Canadian entities serving primarily as financing and holding vehicles. Operations span key US markets including Colorado, Ohio, New Jersey, and Maryland.
Financial distress reflects sustained operating losses and balance sheet pressure. The company reported net losses of $105.1 million in 2024 and $124.2 million for the nine months ended September 30, 2025, alongside an accumulated deficit of approximately $1.3 billion and negative operating cash flow. As of December 2025, it held approximately $515 million in assets against approximately $706 million in liabilities, including approximately $178.9 million in senior secured notes.
The capital structure deteriorated following a missed December 31, 2025 interest payment on the notes, triggering a default after the grace period expired and leading to a series of forbearance arrangements that expired March 25, 2026. These pressures were compounded by industry headwinds including regulatory constraints, tax inefficiencies, and pricing compression across US cannabis markets.
In May 2025, the company completed a court-sanctioned restructuring under the Canada Business Corporations Act (“CBCA”), which extended the maturity of its original notes to 2028 and provided additional time to pursue operational improvements.
The company then undertook a strategic review that extended maturities but did not materially deleverage the balance sheet. The process evolved into a sale-driven strategy supported by a special committee and external advisors, culminating in a support agreement with noteholders holding more than 60% of the outstanding debt.
The restructuring plan centres on a series of transactions designed to monetize the company’s operating footprint. A Virginia sale closed in February 2026, while agreements have been executed for the sale of Ohio operations for $47 million and Delaware assets for $16.5 million, subject to court approval and closing conditions. The company is also pursuing divestitures across additional markets including Colorado, Illinois, New Jersey, Massachusetts, Maryland, and West Virginia, alongside a wind-down of operations in New York and Pennsylvania. The purpose of the CCAA proceedings is to execute this strategy.
The restructuring is supported by a cross-border advisory team. FTI Consulting has been appointed as the monitor, while SierraConstellation Partners is expected to act as chief restructuring officer, subject to further court approval. Moelis & Company is financial advisor to the companies, while Ducera Partners is financial advisor to the supporting noteholders.
Counsel includes Stikeman Elliott / Weil, Gotshal & Manges for the companies, Torys for the monitor, and Goodmans / Feuerstein Kulick for the supporting noteholders.
