Trees Corporation (NEO:TREES) et al., a Toronto, Ontario-based cannabis company with 13 stores across Ontario and British Columbia, obtained CCAA protection on December 22, listing approximately $13.4 million in liabilities. The companies have incurred significant operating losses in the tens of millions of dollars in the past three years due to a mix of unfavourable factors, including fierce competition, increased operating costs, and strict regulation of the cannabis industry imposed by the federal and provincial governments. These factors have limited revenue and increased costs, leading to the current liquidity crisis. The companies will use the restructuring process to maintain operations, disclaim unprofitable leases and streamline remaining operations, and develop and implement a SISP. One Plant Retail Corp. will be providing a DIP loan. EY was appointed monitor. Counsel is TGF for Trees, Torys for the monitor, Fasken for One Plant Retail, Cassels for Tweed Franchise Inc., MLT Aikins for 606093 Saskatchewan Ltd. et al., and Chaitons for CJ Marketing Ltd. et al.

By: Dina Milivojevic