A London-based hashish firm has been granted creditor safety and plans to promote the enterprise amid widespread turmoil within the marijuana trade.
Indiva, Canada's main producer of cannabis-infused edibles, is the newest Southwestern Ontario pot grower to hunt reduction beneath chapter safety legal guidelines because it offers with mounting debt. The corporate revealed in April that it had amassed $71.6 million in debt, in accordance with MJ Biz Every day, a hashish trade publication.
Indiva introduced it was granted creditor safety this month, which it says provides the corporate the “time and stability” to think about potential restructuring offers, together with the sale of the enterprise and its belongings.
“On account of, amongst different issues, the fragmentation of the hashish trade, monetary underperformance and pressures arising from obligations owed to collectors, the Indiva Group has incurred cumulative losses,” the corporate stated. in a press release, noting that the trial didn’t have an effect on his trial. operations.
Indiva will search courtroom approval to promote its enterprise and belongings to Alberta-based hashish and liquor retailer SNDL Inc., an current creditor and certainly one of its largest stakeholders.
“It’s anticipated that the Indiva Group will emerge from creditor safety as a stronger firm with a more healthy stability sheet,” the corporate stated.
Indiva and the corporate's CEO, Niel Marotta, didn’t reply to a request for remark Friday.
A publicly traded firm on the TSC Enterprise Alternate, Indiva operates a 3,700 sq. meter (40,000 sq. foot) plant on Hargrieve Highway in south London, the place it produces and packages edibles and hashish extracts.
https://lfpress.com/information/local-news/london-cannabis-company-indiva-granted-creditor-protection