Zenabis Group CCAA Filing

Zenabis Group CCAA Filing

VANCOUVER, British Columbia–(BUSINESS WIRE)–Zenabis Global Inc. (the “Corporation” or “Zenabis”) announced today that the Corporation and its wholly-owned subsidiaries (collectively, the “Zenabis Group”) have filed a petition with the Superior Court of Québec for protection under the Companies’ Creditors Arrangement Act (the “CCAA”), in order to restructure their business and financial affairs. Due to, among other things, margin pressures caused by the fragmentation of the overall cannabis industry, general operational and financial underperformance, and financial pressures resulting from obligations owing to creditors, the Zenabis Group has been unable to generate positive cash flows and it has consistently incurred cumulative losses. In addition, the Zenabis Group has significant obligations and liabilities owing to its senior secured creditor and its unsecured creditors that it is no longer able to meet. After careful consideration of all available alternatives, the Board of Directors of each of the members of the Zenabis Group determined that it was in the best interest of the Zenabis Group and all stakeholders to file for an application for creditor protection under the CCAA. The initial Court order sought is expected to provide a stay of creditor claims and the exercise of contractual rights to give the Zenabis Group the time and stability required to explore the sale of assets to facilitate the definitive resolution and settlement of outstanding matters with its senior secured creditor and implement any other restructuring options that may allow it to maximize the value of its assets for the benefit of its creditors and other stakeholders. As part of the CCAA application, the Corporation will seek approval of the appointment of Ernst and Young Inc. as the Monitor to oversee the CCAA proceedings and report to the Court. Concurrently with the filing, the Zenabis Group has entered into an Agreement for Purchase and Sale (the…

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Source : Zenabis Group CCAA Filing

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