BC Craft Supply Co. Ltd. announces that it has filed a proposal pursuant to the Bankruptcy and Insolvency Act (Canada) with the Official Receiver, with Crowe MacKay & Company Ltd acting as proposal trustee.
The Proposal
The Proposal will enable the Company to preserve and carry on its core business. The Proposal provides that affected creditors with proven claims will receive a cash distribution, with the option to convert some of the cash distribution to a cash and equity distribution, once the Company has completed its audit, resumed trading and after such conversion is permitted. The cash distributions will be primarily funded by sales revenue. Once implemented, the Proposal will be effective and binding on all affected creditors.
The Proposal provides a better recovery for affected creditors than in a bankruptcy scenario with a forced liquidation of its assets, and the successful implementation of the Proposal will enable the Company to continue its business operations.
A meeting of CRFT’s creditors is scheduled to take place on April 25, 2022 at 2:00 p.m PST, virtually. In the event the Proposal receives the requisite support at the creditors’ meeting, CRFT will file an application to the British Columbia Supreme Court to seek court approval of the Proposal.
Corporate Update
The Company announces that it has entered into a supply, packaging and licensing agreement with 9869247 Canada Limited d/b/a Safari Flower Co. (“Safari”) dated March 18, 2022 (the “Licensing Agreement”). Pursuant to the Licensing Agreement, CRFT will supply Safari with bulk cannabis to process into cannabis products by packaging and labelling the bulk cannabis in a form compliant for sale to Canadian consumers, following which Safari will sell and distribute the resulting cannabis products on behalf of CRFT. The initial term of the Licensing Agreement is for one (1) year, following which it will automatically renew for an additional year unless either party provides notice of non-renewal at least ninety (90) days before the end of the then-current term. Either party can terminate the Licensing Agreement with 30 days notice upon breach of any representation, condition, warranty or covenant under the Licensing Agreement.
CRFT also announces the expiration of the Cultivation, Sales (Medical) and Processing license issued by Health Canada to Medcann Health Products Ltd. in connection with the termination of the Medcann facility lease on March 31, 2022 and it has terminated the previously announced service agreement with Think Ahlot Corporation effective January 25, 2022.
About BC Craft Supply Co. Ltd.
BC Craft Supply Co. Ltd. is a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. The Company offers a reimagined vision for craft markets through collaboration, expertise, and adaptation. Its operations include:
- CRFT a curator and aggregator of craft cannabis, providing advocacy and access for premium small-batch growers to Canada’s cannabis market;
- Feelwell Brands, a successful cannabinoid brand house licensed in the state of California; and
- AVA Pathways a pre-clinical biotech company focused on neuroplasticity and mental health applications using psilocybin and compounds derived from mushrooms.
BC Craft works with local artists cross-sector and remains fervently committed to keeping the art, technique, and purity of their pursuit. Follow @BC_Craft on Twitter for the latest updates.
