Canadian cannabis company Invictus granted creditor protection

Another Canadian marijuana producer is in financial straits.

Vancouver, British Columbia-based Invictus Group has been granted creditor protection so it can conduct a strategic review to address near-term liquidity issues.

Analysts have warned that a growing number of cannabis companies are quickly running out of cash, reflecting disappointing earnings and front-loaded capital expenditures.

In December, Canadian producers AgMedica Bioscience and Wayland Group sought creditor protection.

Invictus on Thursday said it sought creditor protection with the Supreme Court of British Columbia to address issues related to a 10.6 million Canadian dollar ($8 million) security from its lender, ATB Financial.

The Vancouver company said the total amount demanded was CA$10.6 million.

Invictus also announced the resignation of interim Chief Executive Officer Marc Ripa.

Ripa will remain on the board to assist with the transition.

The board has not yet appointed his replacement.

“While in (Companies’ Creditors Arrangement Act) protection, the Invictus Group will continue its normal day-to-day operations and plans to commence a review of strategic alternatives in the immediate future,” according to the company’s news release.

Shares of Invictus trade on the TSX Venture Exchange as GENE.