Flower One Holdings Inc., FO Labour Management Ltd. and Flower One Corp.

Flower One Holdings Inc., FO Labour Management Ltd. and Flower One Corp. (collectively the “Companies”), Nevada's largest licensed producer of cannabis with a registered office located in Vancouver, British Columbia, obtained CCAA protection on October 17. For the past few years, the Companies have experienced various challenges including, among other things: (1) production issues impacting both quality and quantity produced at the Companies' facilities; (2) margin compression caused by increased market competition and a lack of vertical integration; (3) significant debt service costs (with approximately $6 million due before the end of the year); and (4) corporate overhead costs, including the financial burden associated with being a publicly traded company. The Companies' financial challenges have been compounded by a significant reduction in product sales due to decreased tourism in Las Vegas as a result of the COVID-19 pandemic, which reduced demand. PwC was appointed Monitor. Counsel is Blakes for the Companies and McCarthy's for the Monitor.