Atlas Global Brands, the company behind cannabis brands like D*gg Lbs, GreenSeal, and Electric Lettuce along with its subsidiaries, has been granted an initial order under the Companies’ Creditors Arrangement Act (CCAA).
Atlas Global includes GreenSeal Cannabis Company Ltd., GreenSeal Nursery Ltd., AgMedica BioScience Inc., Wellworth Health Corp., 5047346 Ontario Inc., 8050678 Canada Inc., and Tavivat Naturals Inc. as its subsidiaries. The company says the CCAA order will provide an opportunity to restructure its business and financial affairs.
Atlas Biotechnologies Inc. and Atlas Growers Ltd had previously gone into receivership in 2023.
Headquartered in Chatham, Ontario, Atlas Global operates its business of cultivation, extraction, manufacturing, marketing, and distribution through its wholly-owned Canadian subsidiaries, GreenSeal and AgMedica. Atlas Global operates two licensed cannabis facilities in Canada, one of which has European Union GMP certification, as well as three medical pharmacies in Israel. Atlas Global distributes its products within Canada and to seven other countries: Australia, Denmark, Germany, Israel, Norway, Spain and the United Kingdom.
At the end of 2023, Atlas Global employed 185 full-time employees in Canada and two full-time employees in Israel. In early 2023, Atlas announced it was moving its operations from Alberta to Ontario and laying off 50 workers in the process. In August 2023, the company listed a notice of sale for many of its assets. In January 2024, the Agriculture Financial Services Corporation filed a bankruptcy order against Atlas Growers.
A bankruptcy creditor package filed in February of this year lists $3.5 million in total realized assets. It lists the Agriculture Financial Service Corporation as a secured creditor with the company for a total of $8.6 million.
The Atlas Group is scheduled to return to Court for a comeback hearing on June 27, 2024, at which time it plans to seek, among other relief, an Amended and Restated Initial Order, an extension of the stay of proceedings, and interim financing to allow the Atlas Group to stabilize its operations, consider possible transactions, and emerge from the CCAA Proceedings as a going concern.
One of the Company’s creditors, Stoke Canada Finance Corp., has applied to have a receiver appointed over the Company’s receivables and related assets. Unless resolved, that application will be heard at the Comeback Hearing.
The Company says it continues to believe that the protection afforded by the CCAA will allow it to stabilize operations in order to consider potential restructuring transactions that would benefit all stakeholders, including the sale of all or substantially all of the business or assets of the Atlas Group through a court-supervised sales process.
