- Insolvency Insider Canada
- Posts
- SugarBud Craft Growers Corp., Trichome Holdings Corp., and 1800905 Alberta Ltd.
SugarBud Craft Growers Corp., Trichome Holdings Corp., and 1800905 Alberta Ltd.
SugarBud Craft Growers Corp., Trichome Holdings Corp., and 1800905 Alberta Ltd., a Stavely, Alberta-based cannabis business, filed an NOI on September 26. Since receiving its cultivation licence and commencing its cannabis operation in August of 2019, Sugarbud has been cash flow negative for the entire history of its operations. Despite attempts to access additional financing or complete a strategic transaction, Sugarbud has faced a significant working capital deficit which makes it unable to pay its ongoing obligations as they become due. On September 22, Connect First Credit Union Ltd. ("CFCU"), the companies’ primary secured lender, demanded on its loan. Sugarbud has exceeded the amount currently available under its existing credit facility with CFCU and no longer has any available cash flow to fund its operations. CFCU has indicated that is only prepared to fund the companies on a super-priority basis through an NOI proceeding. A&M is the proposal trustee. Counsel is MLT Aikins for the companies, BDP for the proposal trustee and Dentons for CFCU.