Cannabis food company gets initial creditor protection order in Canada

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Plus Products, a marijuana and hemp foods company, received an initial creditor protection order from a Canadian court as it attempts to restructure its business.

Plus is based in San Mateo, California, but maintains a head office in Vancouver, British Columbia, and its shares trade as PLUS on the Canadian Securities Exchange.

The initial court order under Canada’s Companies’ Creditors Arrangement Act (CCAA) for a 10-day stay of proceedings against Plus might be extended by a B.C. court.

The Plus board is undertaking a review of strategic alternatives “including the solicitation, development and execution of any potential sale or other strategic transaction,” according to a Monday news release.

Plus, which also makes sleep-aid products, canceled its annual general shareholder meeting, which was scheduled for Tuesday.

“The company hopes to exit CCAA proceedings in a position to continue the success of its brand in the United States, and continue its mission to make cannabis safe and approachable,” Plus said in the release.

In a statement, Plus co-founder and CEO Jake Heimark cited “the slow rollout of legal dispensary licenses in California, and the structure of the California market (which) have made it difficult for independent brands to remain competitive in this state.”

“We continue to believe the strongest brands will come out of California, and I am confident that the outcome of these proceedings will result in a business that matches the strength of our brand for our employees, debtholders and shareholders.”

PricewaterhouseCoopers has been appointed as monitor of the CCAA proceedings.

Documents related to the proceedings are available here.