TORONTO – Ontario Superior Court of Justice (Commercial List) granted Ayurcann Holdings Corp. and its subsidiary Ayurcann Inc. creditor protection under the Companies’ Creditors Arrangement Act (CCAA). The Court appointed Alvarez & Marsal Canada Inc. to oversee the proceedings.
The initial court order provides for, among other things, a stay of creditor claims and proceedings for an initial period of 10 days, subject to extension thereafter as the court deems appropriate. The CCAA proceedings and the stay will provide Ayurcann with the time and stability required to continue operating in the ordinary course while considering potential restructuring alternatives.
Ayurcann intends to seek court approval to launch a sale of the business and assets as well as approval of debtor-in-possession financing.
Trading of Ayurcann’s common shares on the Canadian Securities Exchange (CSE) may be halted for a period of time and, as a result of having filed for protection under the CCAA, Ayurcann may be suspended or delisted by the CSE.
