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Heritage Cannabis gets creditor protection, lender demands $8.5M

Published on April 4, 2024 by David Wylie

Photo: Contributed

Another purveyor of once popular cannabis brands is going bust.

Heritage Cannabis announced this week it has obtained creditor protection from the Ontario Superior Court of Justice.

The company is known for Purefarma, Pura Vida, RAD, Adults Only, Juicy Hoots, Premium 5, Thrifty, and feelgood.

In a statement, Heritage says BJK Holdings Ltd. has demanded repayment of nearly $8.5 million. “The difficult but necessary decision to commence CCAA proceedings was made after careful consideration of the company’s financial position, while evaluating all available alternatives and engaging in significant consultation with legal and financial advisors,” says Heritage.

The company says it now intends to seek approval of a sale and investment solicitation process. The board of directors will remain in place, and management will remain responsible for the day-to-day operations.

“It is anticipated that the Canadian Securities Exchange will place Heritage under delisting review and that there can be no assurance as to the outcome of such review or the continued qualification for listing on the CSE,” says the statement.

More information is available on KPMG’s website, which has been appointed as monitor.