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James E. Wagner Cultivation Corporation

James E. Wagner Cultivation Corporation and companies related to it (“JWC”) produced and sold cannabis from two manufacturing facilities located in Kitchener. The shares of JWC were publicly traded at the commencement of its insolvency proceedings.

JWC had approximately 160 employees and held two cannabis licenses.

JWC commenced insolvency proceedings pursuant to the Companies’ Creditors Arrangement Act and KSV was appointed by the Court as Monitor.

The primary purpose of the restructuring proceedings was to create a stabilized environment to enable JWC to pursue a restructuring of its business by conducting a “stalking horse” sale and investor solicitation process (“SISP”) while continuing operations in the ordinary course of business.

KSV assisted JWC to obtain and negotiate a debtor-in-possession loan facility of $8 million from Trichome Financial Corp., JWC’s principal secured lender. TFC incorporated a new entity to be the stalking horse bidder in the SISP. KSV designed the SISP and negotiated the stalking horse bid.

The business and assets of JWC were successfully sold to the stalking horse bidder, which is continuing to operate the business. The transaction preserved jobs for most employees and has provided the purchaser with the platform to advance the business free of legacy obligations, under a new capital structure.

KSV also assisted the purchaser in its dealings with Health Canada to address regulatory matters.