MJ Biz
Canadian cannabis firm BZAM, which merged with The Green Organic Dutchman in 2022, has been granted creditor protection to restructure the business and pursue a sale process.
The Ontario Superior Court of Justice granted the request for creditor protection for BZAM and its Canadian subsidiaries under the Companies’ Creditors Arrangement Act (CCAA), the Pitt Meadows, British Columbia-based company said in a Thursday news release.
In an affidavit filed with the application for creditor protection, CEO Matthew Milich said the company had accumulated 112.9 million Canadian dollars ($83.2 million) in consolidated liabilities.
“The applicants have struggled with cash flow, and since January 31, 2024 in particular, the cash position of the applicants has deteriorated significantly,” according to the affidavit, which says the company’s cash position had fallen to CA$1.9 million for the week of Feb. 25, 2024.
Some of BZAM’s biggest liabilities included unpaid excise and other tax.
Court filings say BZAM had excise duties payable of CA$9.5 million
