A cannabis company that employs nearly 150 people on Prince Edward Island has been granted creditor protection after incurring a debt of more than $200 million, reports CBC. The FIGR Group grows its cannabis on PEI and has a second processing facility in Simcoe, Ont., in addition to its Toronto headquarters. The subsidiaries are FIGR Brands, Inc., Canada’s Island Garden Inc. and FIGR Norfolk Inc. FIGR is owned by parent company Pyxus International Inc., a North Carolina-based tobacco company. How Prince Edward Island went from stigma central to a pot paradise Find your local pot retailer: Here’s every licensed cannabis shop in Prince Edward Island PEI turns a profit in first year of running island’s legal pot shops In a press release last week, Pyxus announced it was divesting its Canadian cannabis subsidiaries to focus on its more profitable tobacco and e-liquid businesses. “Our strategic decision to exit cash flow-negative cannabinoid operations will allow us to reduce corporate SG&A (selling, general and administrative expense) and sharpen our focus on growing our more profitable tobacco and e-liquid businesses such that these complementary businesses can fully leverage Pyxus’ 145-year heritage and existing relationships,” said Pieter Sikkel , president and CEO of Pyxus International. “We maintain our belief that there is value in FIGR and its growth can be accelerated with the right capital structure and partner,” Sikkel added. As part of its filing under the Companies’ Creditors Arrangement Act ( CCAA) , FIGR has obtained a loan from another Pyxus subsidiary to fund operations as it works through the CCAA proceedings, the release states. According to Pyxus, the creditor protection should allow the business to carry on as usual, and avoid layoffs, as FIGR seeks a buyer.
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Source : Carrying more than 0 million in debt, FIGR granted creditor protection
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