Down to $1,200 cash and $15.5M in liabilities, Ontario LP Muskoka Grown filed a notice of intent to file for bankruptcy. The family-run company, which produced small-batch craft REC, blamed COVID-19 and Ontario’s lack of REC retail, along with its own struggles with crop quality.
Twitter–@ItsDGC, @TheCanadianMike, MJ Biz Daily
- The filing occurred less than two months after the company shipped its first order of “high-quality” flower–at a time when most LPs were pivoting to value products.
U.S. investors filed a lawsuit against Alberta LP Sundial, alleging the company misled them about the its acquisition of a U.K. firm that would allow Sundial to be “first to market” in exporting hemp-derived CBD to the EU.
Hemp Industry Daily
In the US, class action lawsuits against cannabis companies–including Canadian companies like Sundial–are up 116%.
Cannabis Life Network
- If you’d rather not have one of those, McCarthy Tétrault LLP has an advice sheet for how to avoid becoming the target of a securities class action.