Canadian hashish edibles producer, Indiva Restricted, introduced this week that it has formally obtained creditor safety ‘with a view to restructure (its) enterprise and monetary affairs’.

In a press launch printed yesterday (June 13), the embattled firm introduced that the Ontario Superior Courtroom of Justice had granted the preliminary order below the Comapnies Collectors’ Association Act (CCAA)

This can be a course of reserved for bigger companies that owe their collectors over $5m and are dealing with monetary issue, permitting the corporate safety from its collectors whereas it develops a restructuring plan, which might contain promoting property or elevating new capital,

Indiva says it now intends to hunt court docket approval to launch a sale and funding course of for its enterprise and property.

A key creditor and important stakeholder in Indiva, SNDL, intends to ‘purchase considerably all the enterprise and property of the Indiva Group, by issuing an preliminary ‘stalking horse’ bid, which is able to set the underside value for the bidding course of to start.

In early June, 2024, Indiva introduced that its liabilities from a strategic funding of $22m from SNDL in 2021 had been prolonged, after the corporate paid again $2m in April, 2024. Of their most up-to-date quarterly report, Indiva introduced a web lack of $1.8 million.

The corporate cited ‘the fragmentation of the hashish trade, monetary underperformance and pressures ensuing from obligations owing to collectors’, for its monetary woes.

“After cautious consideration of all accessible options together with enterprise a strategic overview which was unsuccessful in figuring out an appropriate acquirer or elevating adequate capital to fund sure liabilities, the board of administrators of every member of the Indiva Group decided that it was in the very best curiosity of the Indiva Group and its stakeholders to hunt creditor safety below the CCAA,” it mentioned in a its launch.

“The enterprise operations of the Indiva Group is not going to be interrupted on account of the CCAA proceedings. It’s anticipated that the Indiva Group will emerge from creditor safety as a stronger firm with a more healthy stability sheet.”