The monitor for BZAM will make a motion before the Ontario Superior Court of Justice on Thursday, March 27, seeking an extension of the current stay period under the CCAA to May 15, 2025.

The Stay Period has been extended six times during the pendency of BZAM’s CCAA proceedings, with the most recent extending to and including March 31, 2025. BZAM first received protection under the CCAA on February 28, 2024.

BZAM, through its court-appointed monitor, says the extension of the stay of proceedings to  May 15, 2025 will preserve the status quo for the company and ”provide the breathing room required for the applicants to seek approval of the Stalking Horse Transaction, attempt to resolve outstanding matters with the Department of Justice, the Canada Revenue Agency and Health Canada, and continue preparations to exit these CCAA Proceedings.”

In October, an Ontario Superior Court Justice approved the Share Purchase Agreement dated August 23, 2024, among BZAM Holdings Inc. as vendor, BZAM Management Inc. as target, 1000912353 Ontario Inc. as Purchaser, and Wyld Canada Inc. as an interested third-party.

On January 13, 2025, BZAM then received an approval and vesting order (along with certain other ancillary relief), approving, among other things, the Edmonton Property Transaction, whereby BZAM Cannabis Corp. sold to 2627411 Alberta Ltd, among other things, the lands and premises municipally described as 8770 24th Street, Sherwood Park, Alberta.

The company’s monitor says that there are several outstanding items that BZAM needs to resolve prior to completing its CCAA Proceedings, including:

The delay in seeking the Stalking Horse Transaction and completing these CCAA Proceedings is attributable to a variety of factors, including the Applicants’ litigation with Final Bell Holdings International Ltd., which was settled on December 13, 2024, and outstanding matters with the Canada Revenue Agency and Health Canada.

The Applicants need to resolve several outstanding items before completing these CCAA Proceedings, including certain outstanding tax matters with the Department of Justice (DOJ) and the Canada Revenue Agency (CRA). 

The monitor notes that the applicants, the monitor, the CRA, and the DOJ have engaged in discussions in an attempt to reach a consensual resolution of these matters. BZAM also agreed to not seek approval of the Stalking Horse Transaction while these discussions remain ongoing.

The applicant also must, among other issues, resolve outstanding discussions with the DOJ and Health Canada regarding specific licensing fees under the Cannabis Act.

As of February 15, 2024, TGOD (a company that BZAM previously merged with), BZAM Management, and BZAM Labs collectively had approximately $9,083,289.33 in excise tax arrears.

On February 2, 2024, the CRA agreed to a temporary payment plan with BZAM Management pursuant to which it agreed to pay $164,474 per month in excise taxes. On October 18, 2023, the CRA agreed to a payment plan with TGOD pursuant to which it agreed to pay $330,000 per month in excise taxes.

As of February 15, 2024: TGOD had approximately $1,056.11 outstanding in respect of payroll deductions; BZAM Management had approximately $1,363,291.60 outstanding in respect of GST; BZAM Cannabis had approximately $923,851.04 outstanding in respect of GST; and BZAM Labs had approximately $356,302 outstanding in respect of HST.

The Applicants will make a motion before the Honourable Justice Osborne of the Ontario Superior Court of Justice (Commercial List) (the “Court”) on Thursday, March 27, 2025, at 10:00 a.m. (EST) or as soon after that time as the motion can be heard.

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