Business of Cannabis
Canadian cannabis producer BZAM Group has successfully secured Companies’ Creditors Arrangement Act (CCAA) protection, allowing it to stave off bankruptcy for the time being.
In a press release published this week, the company, which lost more than $101m last year, announced it has been granted the order from the Ontario Superior Court of Justice.
The Companies’ Creditors Arrangement Act (CCAA) is a Canadian federal law designed to help financially distressed corporations avoid bankruptcy, allowing those with over $5 million in debt to restructure their operations and finances under court supervision.
According to its most recent financial filings (September 30, 2023), BZAM currently has over $85m in liabilities, and just under $5m in cash.
It blamed its dire financial position on ‘margin pressures caused by significant competition and the fragmentation of the cannabis industry, and financial underperformance and pressures resulting from obligations owing to creditors’.
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