Mernova Medicinal Inc. and Creso Canada Limited, CCAA

Mernova Medicinal Inc. and Creso Canada Limited, Nova Scotia-based cannabis companies, obtained CCAA protection on April 16.

The companies are in the business of cultivation, processing and wholesale recreational medical distribution of cannabis. Mernova is the operating company and Cresco is Mernova’s direct parent, holding no other assets.

Cresco is wholly-owned by Melodiol Global Health Limited, a publicly-traded Australian corporation which initiated voluntary administration proceedings in December 2024. Mernova has suffered a significant financial loss as a result of a variety of pressures affecting the cannabis industry, including competition and over-supply, operating costs associated with the regulatory regime, the requirement to obtain significant capital to successfully develop and generate revenue from new products, decreasing investor confidence in the cannabis industry, and the high cost of excise duties for cannabis products issued by CRA.

The companies’ primary secured creditors, La Plata Capital, LLC (owed $6.6 million) and Briant Nominees Pty Ltd. (owed $2.9 million), have both issued demands under their respective loan agreements, and are supportive of the companies running a SISP as part of a CCAA process.

Grant Thornton is the monitor.

Counsel is MLT Aikins and Cox & Palmer for the companies, Stewart McKelvey for the monitor, and Blakes for La Plata Capital.