Others Falling Will Be Auxly's Benefit
Canadian cannabis companies are facing bankruptcies due to high taxes, a saturated market, and few options.4 The US Bankruptcy Court has denied the US Trustee's motion to dismiss The Hacienda Company, LLC's filing under the United States Bankruptcy Code.2 BC Craft, the first Canadian cannabis company to file a notice of intention to make a restructuring proposal in 2022, filed for bankruptcy protection in February 2022.3 Tantalus Labs, with over $14 million in debt, was forced to enter insolvency and sell off its remaining inventory or have it destroyed by the Canada Revenue Agency.5 Fire & Flower, a cannabis retailer, filed for CCAA protection in June 2023.1 Canadians who invested in cannabis companies have lost more than $131 billion, according to data collected by law firm Miller