SNDL - SNDL's 'Aggressive' Loan-To-Own Strategy Forces Delta 9 Cannabis Co. To Seek CCAA Protection | Benzinga
Delta 9 Cannabis Inc. (OTC:DLTNF) reported Monday that it had obtained an initial order for creditor protection from the Court of King's Bench of Alberta under the Companies Creditors Arrangement Act (CCAA).
The Initial order provides for a 10-day stay of creditor claims and proceedings concerning Delta 9 and its subsidiaries, Delta 9 Logistics Inc., Delta 9 Bio-Tech Inc., Delta 9 Lifestyle Cannabis Clinic Inc. and Delta 9 Cannabis Store Inc.
The company's board of directors opted for the move after reviewing the following:
- The cash and liquidity position of the company
- The amount of debt of the company and its inability to repay such debt over the next twelve months, including payments to suppliers and trade creditors
- The limited ability of the company to raise further capital
- All available alternatives to an application for creditor protection
Read Also: Delta 9 Cannabis’ Q1 Revenue Drops Slightly YoY, Gross Profit Grows 10%
SDNL's Aggressive Loan-To-Own Strategy
The Winnipeg-based company said the "aggressive actions by the company's creditors, namely demand notices by SNDL Inc. on May 21st and July 12th, as well as SNDL Inc.'s recent acquisition of all the Company's senior secured debt, also played a material role in the decision to seek creditor protection."
SNDL Inc. (NASDAQ:SNDL) said earlier this month that it had wrapped up the acquisition of the principal indebtedness of Delta 9 Cannabis from Connect First and Servus Credit Union Ltd. The purchase price ...