Spring Loaded Technology obtains initial CCAA stay as medical device maker seeks capital reset

Spring Loaded Technology Incorporated, a Dartmouth, Nova Scotia-based medical device company, obtained initial protection under the Companies’ Creditors Arrangement Act on January 26, 2026, following an application before the Supreme Court of Nova Scotia in Bankruptcy and Insolvency.

Founded in 2012, Spring Loaded Technology designs and manufactures assistive orthopedic knee braces for patients suffering from patellofemoral and multi-compartment knee osteoarthritis. The company sells to patients, clinics, and resellers across all 10 provinces, with additional distribution in the United States and the United Kingdom. It employs 17 people and manufactures its products in Nova Scotia.

The business holds four registered global patents and is in the approval process for an additional patent. It maintains active regulatory authorizations from Health Canada, the U.S. Food and Drug Administration, and UK authorities, which management describes as critical to enterprise value and ongoing operations.

As of the filing, Spring Loaded reported total liabilities of approximately $9.9 million, comprised primarily of long-term debt and convertible debentures incurred through multiple financing rounds dating back to 2020. Convertible debentures alone exceed $6.1 million, with accrued interest of roughly $500,000 per year. The company also carries approximately $4.1 million in unsecured long-term debt owed to the Atlantic Canada Opportunities Agency.

While Spring Loaded achieved near break even EBITDA in 2024 and 2025, the monitor reports that the accumulated debenture burden and associated interest expense rendered the capital structure unsustainable relative to operating cash flow. Cash on hand was effectively nil immediately prior to the filing.

Management attributes the company’s distress to a combination of pandemic-era financing dynamics and the failure of legacy convertible debentures to convert to equity as originally anticipated. The 2020 debentures matured on July 21, 2024 and were not extended, leaving the debt technically due and payable and creating persistent enforcement risk.

Efforts to recapitalize through equity raises, management led investments, and asset sale discussions continued through 2024 and 2025 but failed to close, in part due to creditor consent issues and disagreements over priority and recovery outcomes. In January 2026, formal payment demands totaling approximately $4.1 million from the Atlantic Canada Opportunities Agency and $260,000 from debentureholders crystallized the liquidity crisis and prompted the CCAA filing.

4782489 Nova Scotia Limited, affiliated with Wenova Ventures Ltd., is providing interim funding.

Grant Thornton is the monitor. Counsel is O’Keefe & Sullivan for Spring Loaded, Reconstruct for the monitor, and Stewart McKelvey for the DIP lender.