Ayurcann Obtains Creditor Protection to Pursue Restructuring and Sales Process

Executive Summary

• Ayurcann Holdings Corp. and its subsidiary have been granted creditor protection under the Companies' Creditors Arrangement Act (CCAA).
• The Ontario Superior Court appointed Alvarez & Marsal Canada Inc. as monitor to oversee the CCAA proceedings.
• The company intends to seek court approval to launch a sale process for its business and assets and will pursue debtor‑in‑possession financing.

Key Details

• Court Order: Initial Order issued by the Ontario Superior Court of Justice (Commercial List) granting an initial 10‑day stay of creditor claims, with possible extensions.
• Monitor Appointment: Alvarez & Marsal Canada Inc. appointed as monitor for the CCAA proceedings.
• Restructuring Objective: Seek restructuring alternatives to maximize value for creditors and stakeholders; aim to emerge from protection with a stronger balance sheet.
• Sale Process: Company plans to obtain court approval to commence a sale process for its business and assets, administered by the Ayurcann Group and the monitor. Details will be posted on the monitor’s website.
• Financing Plans: Intends to seek debtor‑in‑possession financing at a subsequent hearing to fund the CCAA proceedings.
• Operational Continuity: Business operations are expected to continue uninterrupted during the CCAA process.
• Share Trading Impact: Trading of Ayurcann common shares on the Canadian Securities Exchange may be halted; potential suspension or delisting is possible.
• Access to Documents: Initial Order and all court filings are available at www.alvarezandmarsal.com/Ayurcann.

Notable Quotes

(No direct quotes provided in the release.)