Cannim Group Pty, the worldwide medical hashish firm with operations spanning the UK, Australia, the US and Canada, has entered voluntary administration.
Days later, its UK subsidiary Lumir Clinic, was pressured to pause new affected person enrolments and notify regulators, as its director Tim Henley formally resigned from his place.
The Sydney-based firm is known to have been going through a cashflow disaster for a while, and publicly out there filings present its British subsidiary, Cannim Restricted, was already underneath monetary strain months earlier than the collapse, with web present liabilities and new long-term debt on its steadiness sheet.
Because the mud settles following its dramatic collapse, quite a few events are understood to have already expressed an curiosity within the firm’s property, together with its founder John Worton, whereas collectors already in protracted authorized disputes with the corporate declare they’re owed a number of tens of millions.
The long run for its companies, property, collectors and sufferers stays unclear for now, however UK Director Tim Henley assured Enterprise of Hashish: “Regulation is the important thing, and protected affected person transition is our aim transferring ahead. We’ll be contacting all sufferers and transferring ahead on that foundation.”
Directors referred to as in
In keeping with an October 27 submitting on the Australian Securities and Investments Fee’s Revealed Notices portal, Cannim Australia Pty Ltd and Cannim Group Pty Ltd have entered into voluntary administration underneath part 436A of the Firms Act 2001.
Directors Michael James Billingsley, Neil Robert Cussen and Rajiv Goyal of Olvera Advisors have been appointed based on ASIC Type 505 lodged the identical day.
Courtroom filings present that the directors sought and obtained orders from the Supreme Courtroom of New South Wales to verify their appointment and to restrict their private legal responsibility underneath a Funding Deed with Finstro Securities Pty Ltd, as trustee for the Finstro Asset Belief.
The order permits the directors to attract on short-term finance to commerce via the administration and discover choices for recapitalisation or sale, with their legal responsibility restricted to firm property relatively than private publicity.
Collectors have been invited to a digital assembly on 6 November 2025, the place they might type a committee of inspection or vote to exchange the directors.
Olvera Advisors’ preliminary report signifies that no less than one secured creditor is owed round A$4 million, with substantial noteholder liabilities additionally excellent. A subsequent round confirmed the courtroom’s approval of the Finstro facility, noting that collectors have a three-day window to contest the orders.
The directors’ sale and recapitalisation course of is already underway, with expressions of curiosity due by 7 November.
