Canadian marijuana cultivator The Flowr Corp. received an initial creditor protection order from a Canadian court as the Toronto-based company tries to conduct a sale and solicitation process and exit creditor protection “as a going concern.”
The initial order under the Companies’ Creditors Arrangement Act (CCAA) was granted Thursday by the Ontario Superior Court of Justice.
ADVERTISEMENT
Flowr has simultaneously taken a debtor-in-possession loan of 2 million Canadian dollar ($1.5 million) from 1000343100 Ontario, which is 50% owned by Kelowna, British Columbia-based cannabis company Avant Brands.
In a factum submitted to the court, Flowr said it has “undertaken a complete transformation of its business operations aimed at right-sizing the organization with a view to reaching profitability” and repaid bank debt that was once worth nearly CA$24 million.
However, Flowr told the court that its “monthly cash expenditures exceed its cash receipts” and that it would “run out of liquidity
Read full article on Marijuana Business Daily
