True North Cannabis Co’s court-appointed monitor is seeking offers for the three businesses or assets as part of a court-supervised sale and investment solicitation process (SISP).
The parent company of True North Cannabis Co., as well as Bamboo Blaze and real estate holding company 888, first filed for creditor protection for the three businesses on January 24, 2025.
The bid deadline for the SISP will be 45 days after granting the SISP order.
At the time, the Vancor Group Inc. made an application under the Companies Creditors Arrangement Act (CCAA) declaring that 2744364 Ontario Limited (operating as True North Cannabis Co.), 2668905 Ontario Limited (operating as Bamboo Blaze), and 2767888 Ontario Inc. (888, a real estate holding company) are debtor companies to which the CCAA applies.
A judge approved Vancor’s request for an order (the SISP Order) approving a sale and investment solicitation process to be administered by the monitor. The proposed SISP Order seeks the approval of a stalking horse subscription agreement between the debtors (all three companies) and Vancor, as the Stalking Horse Bidder, which establishes a stalking horse bid in the SISP.
The judge ruled that a sale transaction would benefit all companies involved, saying there is no other, better, or viable alternative.
The court also approved Vancor’s request to file a Claims Procedure Order approving a claims procedure to be administered by the monitor, in respect of claims against the debtors and their directors and officers.
The stalking horse agreement helps to secure the “preservation and continuity of the core business” and the continued employment for many of the companies’ approximately 285 employees.
True North listed $21.4 million in unsecured creditors 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 creditors, for a total of $31.1 million and a grand total of $45.2 million combined.
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.
