Here’s the introduction to the report in the Chatham Daily News……. A Chatham-based medical marijuana production company that appeared to be growing like a weed is facing a multi-million dollar debt that’s putting its future and the jobs of about 160 employees in jeopardy.
AgMedica Bioscience Inc. was just granted protection under the Companies’ Creditors Arrangement Act in court documents filed with the Ontario Superior Court of Justice on Monday, Dec. 2.
A statement of facts filed with the court on Sunday, Dec. 1, stated: “AgMedica is currently in a liquidity crisis” and requires “immediate interim financing and the protections afforded under the Companies’ Creditors Arrangement Act in order to maintain the status quo and obtain the breathing room required to pursue and implement their restructuring strategy.”
Calls and emails to AgMedica executives were not returned on Thursday.
According to the Office of the Superintendent of Bankruptcy Canada, the Companies’ Creditors Arrangement Act is a federal law that allows insolvent corporations that owe their creditors more thanf $5 million to restructure their business and financial affairs.
The statement of facts states the majority of AgMedica’s secured assets are various real property holdings located in Ontario, with three secured creditors having collectively registered mortgages against the real property in the amount of $27.2 million.
In previous news stories about the company, AgMedica appeared poised for significant growth. The company received approval from Health Canada in December 2017 for the production of cannabis leading to approval for the sale of medicinal cannabis in June 2018. A few months later, AgMedica was selected as a supplier for Ontario cannabis stores.
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