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Zenabis, subsidiary of cannabis producer Hexo, files for creditor protection

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Zenabis Global, a subsidiary of Quebec-based licensed cannabis producer Hexo Corp., filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) to restructure the business.

Hexo bought Zenabis only one year ago for 235 million Canadian dollars ($185 million) in stock – one of several recent acquisitions that ultimately pushed the Quebec business to the brink of bankruptcy.

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As reasons for the CCAA filing, Zenabis cited:

Margin pressures caused by the fragmentation of the overall cannabis industry. General operational and financial underperformance. Financial pressures resulting from debt.

The company said the initial court order is expected to provide a stay of creditor claims to give Zenabis time to explore a sale of assets.

“Zenabis Group has been unable to generate positive cash flows and it has consistently incurred cumulative losses,” according to a news release.

The company said it is no longer able to meet

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Marijuana Business Daily

Saskatchewan to allow First Nations to regulate own cannabis stores

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The government of Saskatchewan has introduced legislation to increase First Nations self-governance in the retail cannabis sector, the province announced this week.

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The move comes as Indigenous leaders say they’ve been largely excluded from Canada’s legal cannabis industry, and have called on the federal and provincial governments across the country to grant self-governance over certain cannabis-related activities.

Some provinces in Canada, such as Quebec, do not have any fully legal cannabis stores on First Nations reserves, even though the country legalized the drug in 2018.

Saskatchewan’s Cannabis Control Amendment Act, 2022 would establish a legal framework for First Nations to license and regulate the distribution and sale of adult-use marijuana on-reserve.

“Our government supports First Nations exercising their authority over on-reserve distribution and retailing of cannabis through a legal framework with SLGA,” Lori Carr, minister responsible for Saskatchewan Liquor and Gaming Authority, said in a

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Canadian cannabis company Flowr selling assets for CA$5.1 million-plus

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British Columbia cannabis cultivator The Flowr Corp. is selling “substantially all” of its assets to Avant Brands K1 as part of a sale and investment solicitation process after entering creditor protection in late October.

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The asset sale is worth 5.1 million Canadian dollars ($3.7 million), plus the amount of a debtor-in-possession loan originally worth CA$2 million from Avant Brands K1 and assumed liabilities.

Avant Brands K1 (previously known as 1000343100 Ontario) is 50% owned by Canadian cannabis producer Avant Brands, and the purchase price includes CA$1.1 million in Avant shares.

Flowr said Thursday that the asset sale still requires court approval, expected later this month.

In a news release, Avant Brands CEO Norton Singhavon said Avant has “always viewed (Flowr’s) Kelowna facility as a top-tier and world class asset that would be an ideal fit for the Avant portfolio.”

Avant said the facility in British

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Ontario cannabis store regulator under pressure over alleged ‘pay-to-play’ deals

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(This is the second in a series of stories exploring pay-to-play schemes in Canada’s cannabis industry. The first installment can be found here.)

Ontario’s cannabis store regulator is facing calls to crack down on alleged pay-to-play schemes that some industry executives say allow larger marijuana producers and brands to secure shelf space for their products and other special treatment from retailers.

Industry executives say the problem ballooned earlier this year after the Alcohol and Gaming Commission of Ontario (AGCO) attempted to clarify its rules on inducements or “slotting fees” by issuing an update to the Registrar’s Standards for Cannabis Retail Stores – the rules governing legal marijuana stores.

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Jennawae McLean, co-founder and CEO of Calyx + Trichomes in Kingston, said pay-to-play is common in many industries, “but they’re straight up not allowed in Ontario, and I don’t understand why the AGCO and other provinces

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