Dynaleo Inc. and Dynaleo Group Services Inc., NOI

Dynaleo Inc. and Dynaleo Group Services Inc., Alberta-based companies in the business of producing and distributing cannabis-infused gummies, each filed an NOI on May 23, 2023. Following the construction of their facility in Nisku, Alberta, and the subsequent launch of three popular, nationally distributed house-brands, the companies grew their business and number of products in the market. Despite the success of their house brands, to achieve positive cash flow and profitability, the companies entered into an agreement for Dynaleo to produce products for a large brand leader cannabis-infused edible gummies business. As part of the contract, Dynaleo made significant capital expenditures to acquire specialized machinery and committed to months of product development work. After several months of ramping up its operations in order to supply the customer under the agreement, the customer advised that, due to unforeseen changes to its strategic priorities, it was unable to purchase the anticipated product volumes. Without the revenue generation expected from the customer, the companies are no longer able to meet their short-term obligations as they become due. Harris & Partners is the Proposal Trustee. Miller Thomson is counsel for the companies.

By: Dina Milivojevic