Heritage Cannabis Holdings Corp. announced on August 29 the completion of the company’s sale to a stalking horse bidder called HAB Cann Holdings Ltd.

The company behind a handful of cannabis brands like RAD, Purefarma, Premium 5, Pura Vida, Dank Drops and others had first sought creditor protection in April. 

That decision at the time was largely informed by Heritage’s senior secured lender, BJK Holdings Ltd., demanding payment in full of $8.4 million owed by the Heritage group. 

In April, the court approved a stalking horse subscription agreement involving Heritage and Heritage West as vendors, with BJK and HAB Cann Holdings Ltd. as the purchasers.

The President of Hab Cann is listed as David Thiessen. A person by the same name is listed as working at BJK in a press release in 2021.

The common shares of Heritage were delisted from the Canadian Securities Exchange at the close of business on August 26, 2024, and from the OTC Pink at the close of business on August 28, 2024.

The purchased entities are Heritage Cannabis Holdings Corp., Heritage Cannabis West Corporation, Heritage Cannabis East Corporation, and Purefarma Solutions Inc.

The Heritage Group lists some $25.3 million in secured and unsecured debt to more than 200 creditors, including $6.8 million owed to BJK Holdings, and nearly $13.4 million to the Canada Revenue Agency for excise and sales tax. 

The principal terms of the stalking horse agreement say the purchaser, Hab Cann, will “determine which employees it will assume and employ prior to Closing. In the event that no conditional offer of employment is made to an employee or an employee who receives an offer of employment rejects such offer, such employee shall be deemed to be a “Terminated Employee”.”

The purchase price includes a call for a release of “all amounts outstanding and obligations payable by the applicants under the Senior Loan Agreement and all related loan and security documents, which amount as of June 14, 2024 was $6,837,059.71 (excluding legal fees and expenses).”