Expanded Scope Or Status Quo? Staying The Expiry Of Cannabis Licences

The spate of cannabis insolvencies over the past several years have heralded a number of developments in Canadian insolvency law.

One of the more recent developments is the increasing number of regulatory "status quo" provisions being sought and obtained by debtors. These provisions not only stay the suspension or cancellation of debtor licences but also the expiry of those licences in the ordinary course. A summary of the most relevant cannabis proceedings is set out below.

In Tantalus Labs Ltd. (Re), 2023 BCSC 1450, Tantalus Labs Ltd. ("Tantalus"), the debtor company in its proposal proceedings under the Bankruptcy and Insolvency Act (Canada) (the "BIA"), was in the process of liquidating its cannabis inventory but was running up against the expiry of its excise licence issued under the federal Excise Act, 2001 (Canada). Both the relevant cannabis licence under the federal Cannabis Act (Canada) and an excise licence are necessary for a producer to possess,