Freedom Cannabis says it needs more time to finalize the terms of its Sales Investment and Solicitation Process (SISP) and Stalking Horse Agreement to resolve issues with its current landlord, including an outstanding debt.
The company is seeking an extension of the current stay of proceedings for two more months. The previous stay was to expire on October 11. The company now seeks to have the stay extended through December 19, 2024
At the date of the initial order filed earlier this year, Freedom was in default under its lease agreement, with total arrears as of August 1, 2024, of approximately $2,396,456. Then, between December 2022 and April 2024, Freedom says it made monthly lease payments in the amount of $85,000. Lease payments were then reduced to $50,000 per month in April 2024 and thereafter until the initial order was granted.
After that, Freedom paid its landlord the sum of $38,709.68 for the pro-rated August rent, and $50,000 for the September rent.
Freedom leases approximately 111,600 square feet of space at a facility located in Acheson, Alberta. The company is also looking at other facilities to operate out of.
As of August 3, 2024, Freedom’s liabilities included a balance of approximately $9,488,016 owing to the Canada Revenue Agency (CR) due to unremitted excise duties.
