Sirona Pharma secures CCAA protection and DIP loan to pursue licence reinstatement

Sirona Pharma Inc. and three related entities obtained CCAA protection on November 21, 2025, after Justice Gill granted an Initial Order providing a stay to December 1 and approving up to $825,000 in interim financing to fund urgent operating and remediation costs. The order authorizes Sirona to maintain limited activity at its Peers, Alberta facility and retain essential personnel while Ernst & Young Inc. serves as Monitor.

The companies historically cultivated, processed, and distributed medical cannabis but halted production after Health Canada suspended Sirona Pharma’s licence on September 11, 2025. The group operates a 126,800 square foot multi-phase facility, although former management utilized only Phases I and II, equal to approximately 15% of capacity, compared to the 50% threshold management considers necessary to break even.

The companies attribute the liquidity crisis to inherited liabilities and operational shocks. Former management left behind approximately $300,000 in unpaid property taxes, $1.5 million in excise tax arrears, $300,000 owing to suppliers, and $700,000 in unpaid utilities. A forest fire in May 2023 damaged growing rooms and plants, with only partial insurance recovery, and a malware attack allegedly installed by a former director erased much of the companies’ books and records. Difficulty raising capital and weak cannabis sector economics further constrained operations.

The restructuring plan centres on reinstating Sirona Pharma’s suspended Health Canada licence. The group filed a detailed remediation plan on October 31, 2025, addressing facility improvements, compliance steps, and required reporting. With assistance from Canna-Navigators and Hyde Advisory, Sirona intends to rebuild its quality and security programs, hire and train a compliant core team, and restart cultivation across multiple phases once regulatory approval is granted.

EY is the Monitor, while Sinclair Range is the Chief Restructuring Officer. Counsel is MLT Aikins for the companies, McLennan Ross for the Monitor, DBH for Van Maren Financial (2019) Ltd., and Aird & Berlis for Yadevinder Singh Bhullar.