Ecoation Innovative Solutions Inc., NOI

Ecoation Innovative Solutions Inc., a Vancouver, British Columbia-based industry-leading technology platform for greenhouses growers with an additional office in Kingsville, Ontario, filed an NOI on April 8 listing approximately $17.4 million in liabilities.

Through the real-time collection of data, Ecoation’s customers can assess risk and make informed decisions about their crops.

The company had approximately 17 employees and 9 independent contracts at the time of filing, but has since reduced its headcount to 10 employees and 8 independent contractors.

Ecoation’s revenues suffered from the impacts of the COVID-19 pandemic beginning in 2020 and the conflict in Ukraine beginning in 2022, which caused financial hardship for many of Ecoation’s customers, who shifted from spending on technology to stockpiling supplies. Ecoation moved to selling simpler, lower cost products, but this failed to generate sufficient revenue to meet expenses.

In addition, Ecoatioan’s largest creditor, the Minister of Agriculture and Agri-Food (owed $3.3 million), required a 1-year lump-sum payment on the loan, further reducing Ecoation’s available liquidity.

The purpose of the proposal proceedings is to conduct a SISP with 1001199137 Ontario acting as DIP lender and its nominee acting as stalking horse bidder. 

KPMG is the proposal trustee.

Counsel is Osler for Ecoation, McCarthy Tétrault for the proposal trustee and Gowling WLG for the DIP lender.