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ARTICLE · 20 JANUARY 2020

The Canadian Cannabis Sector: Financing In Difficult Times

Fogler, Rubinoff LLP
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Dire predictions in the media about the "bubble bursting" or the floodgates opening for insolvencies in the Canadian cannabis sector

CanadaCannabis & Hemp
Vern DaRe
Vern DaRe
Rick Moscone
Rick Moscone
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Dire predictions in the media about the "bubble bursting" or the floodgates opening for insolvencies in the Canadian cannabis sector has certainly not been helpful to those cannabis producers seeking financing. Whether these predictions are exaggerated or not, to date there have only been a handful of Canadian cannabis producers that have actually commenced insolvency proceedings. One of the first filings under the Companies' Creditors Arrangement Act (the "CCAA") by a Canadian cannabis producer was by AgMedica Bioscience Inc. and certain of its related entities ("AgMedica") on December 2, 2019. Although this is only a single case and CCAA filings have been far and few to date in the Canadian cannabis sector, AgMedica offers some real insight to the challenges currently faced by cannabis producers in raising capital or obtaining financing in the present market.

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