A court has approved the stalking horse deal between True North Cannabis Co. (TNCC Group) and The Vancor Group Inc. (Purchaser), effectively ending the Companies’ Creditors Arrangement Act (CCAA).

However, the CCAA process has not entirely ended as the court has also approved adding a new numbered company, 1001235542 Ontario Inc., as a respondent/debtor and transferring specific assets and liabilities to that numbered company.

The numbered company (ResidualCo) will be added as a debtor to the CCAA proceedings, and the CCAA process will then continue in respect of ResidualCo. The deadline for that process has now been extended to September 5.

The stalking horse agreement helps to secure the “preservation and continuity of the core business” and the continued employment of many of the company’s approximately 285 employees.

True North had begun the stalking horse process (SISP) in March of this year after its parent company first filed for creditor protection for the business on January 24, 2025, along with Bamboo Blaze and real estate holding company 888.

Corry Van Iersel, the CEO of True North Cannabis Co., tells StratCann that True North is now ready to move forward as a business, even recently acquiring two new locations, one in BC and one in Ontario.

True North listed $21.4 million in unsecured credit in January. Bamboo Blaze lists $3.3 million in unsecured credit, and 888 lists $6.4 million. Meanwhile, 888 lists $14.1 million in secured credit, for a total of $31.1 million, and a grand total of $45.2 million.  

At a February 3, 2025 hearing, the court extended the stay to May 2, 2025, and increased permitted borrowings under the DIP Facility to $2 million.

On February 24, Vancor filed materials seeking an order approving a sale and investment solicitation process (the SISP) to be administered by the monitor.

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