Delta 9 Bio-Tech has selected a bid for the purchase of some of its assets through the SISP process that began earlier this year.
If approved by the court, the purchaser will receive 17 of Delta 9’s grow pods, along with intellectual property and some enumerated personal property, as part of the sales and investment solicitation process.
The application will be held before the court on November 15.
On July 15, 2024, Delta 9 Bio-Tech Inc. and four related entities were granted an initial order by the Court of King’s Bench of Alberta under the Companies’ Creditors Arrangement Act (Canada) (CCAA).
On July 24, 2024, the Court approved a sales and investment solicitation process (SISP) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of Bio-Tech’s assets and business operations.
On September 11, 2024, the court granted an order extending Delta 9’s stay of proceedings pursuant to the Amended and Restated Initial Order (ARIO) first granted in July, up to and including November 1, 2024. That extension was to November 1 and has now been extended to January 31, 2025.
Among Delta 9 Bio-Tech’s assets is a 95,000-square-foot cannabis cultivation and processing facility located in Winnipeg, Manitoba, which contains 297 modular “grow pods”. These are retrofitted shipping containers used by some micro cultivators. The company says they are customized for flowering, trimming, cloning, research, testing, support, and storage.
Delta 9 is a vertically integrated group of companies that touches cannabis cultivation, processing, extraction, wholesale distribution, retail sales, and business-to-business sales.
Through the SISP process, Delta 9 and its Monitor selected the highest and only serious bid, the one for 17 of the grow pods along with related intellectual property. The bid price has been redacted in the monitor’s report.
Delta 9’s Monitor sought confirmation from SNDL, the first-ranking secured creditor of the purchased assets, but had not yet received a response when the monitor’s fourth report was filed on November 13.
In a press release earlier in July, Delta 9 said that the CCAA process was in the best interest of the company and its shareholders, especially in light of recent “aggressive” actions by its creditors, namely recent demand notices from SNDL Inc. on May 21 and July 12 and SNDL’s recent acquisition of all the Company’s senior secured debt for $21 million.
