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- Noya Holdings Inc. & Noya Cannabis Inc., CCAA
Noya Holdings Inc. & Noya Cannabis Inc., CCAA
Noya Holdings Inc. & Noya Cannabis Inc., which operate a Hamilton, Ontario-based cannabis production business, obtained CCAA protection on November 6, listing over $13 million in liabilities, including approximately $5.3 million to Lending Stream.
The companies have suffered losses due to, among other factors: rising costs including the costs of regulatory compliance and litigation; the loss of revenues as a result of certain customers filing for CCAA protection; a steep decline in the value of most publicly-traded cannabis companies in Canada, which form part of the companies’ client base; intense competition and an over-supply of cannabis products leading to significant price reduction; and low market demand for cannabis products, partially as a result of the illicit market.
They have made efforts to address these challenges, including by reducing staff, transitioning away from retail sales to wholesale business-to-business sales, and identifying opportunities to improve liquidity. However, while helpful, these steps have been insufficient to address the companies’ financial challenges.
BDO is the monitor.
Counsel is Fogler Rubinoff for the companies, Loopstra Nixon for the monitor and Dickinson Wright for Lending Stream.