#Report
Monitor reported Health Canada had no concerns with the change of control of licence holder Entourage Brands Corp., and that it was working with the purchaser to close.
Entourage Health Corp.
ActiveFollow
- Proceeding
- CCAACompanies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended
- Court
- Ontario Superior Court of Justice · Commercial List
- File
- CL-26-00000281-0000
- Industry
- Cannabis · Cannabis producers
Filings held24
Last activity27 Oct 2026
On the record141 days
OverviewSummary updated
Entourage Health Corp. and six affiliates, including Entourage Brands Corp., Starseed Holdings Inc., North Star Wellness Inc. and CannTx Life Sciences Inc., have been under CCAA protection in the Ontario Superior Court of Justice (Commercial List) since June 17, 2026, with Ernst & Young Inc. as monitor under court file CL-26-00000281-0000. The initial order stayed proceedings to June 29, 2026 and created an administration charge and a directors' charge, each capped at $250,000. The monitor's First Report of June 25, 2026 recorded cash on hand of CAD $1,046 thousand, a workforce of 22 following the termination of approximately 53 employees, continued operation of the medical business and a wind-down of the adult-use business through disposition of inventory. On June 29, 2026 the court approved a sale process with a bid deadline of July 30, 2026.
Proceedings AIOpen Proceedings AI
Case updates25 dated entries
#Sale
Approved the subscription agreement and reverse vesting transaction with 1000460405 Ontario Inc. over the purchased shares of Entourage Health Corp., including the Starseed medical business.
Source: Approval and Reverse Vesting Order, dated August 27, 2026
#Sale
Directed excluded assets and liabilities to ResidualCo, 1001724861 Ontario Inc., with closing to occur on delivery of the monitor's certificate triggering the implementation steps.
Source: Endoresement for Reverse Vesting Order and Anchillary Relief Order, dated August 27, 2026
#Report
Monitor's Second Report put forward the August 20, 2026 subscription agreement with 1000460405 Ontario Inc., the highest SISP bid, with Confidential Appendices 1 and 2 sealed; the applicant expects a significant shortfall.
Source: 003 Second Report of the Monitor, dated August 20, 2026
#Order
Approved a sale process for the debtors' business and assets, fixing July 30, 2026 as the deadline for bids.
Source: SISP Approval Order
#Report
Monitor's First Report reported cash on hand of CAD $1,046 thousand, 22 remaining employees after roughly 53 terminations, and the medical business operating while adult-use inventory is disposed of.
Source: 002 First Report of the Monitor
#Order
Granted CCAA protection to the seven debtors, stayed proceedings to June 29, 2026, appointed Ernst & Young Inc. monitor, and imposed a $250,000 administration charge ranking ahead of a $250,000 directors' charge.
Source: Initial Order
#Filing
2437653 Ontario Inc., the debtors' senior and subordinated secured lender, owed approximately $240.1 million as at May 15, 2026, applied for CCAA protection over the seven Entourage entities.
AnalysisAll insights
Case update
Entourage Health: the exit deferred, and a stay sought to October 2027
EY reported on October 27 that Health Canada had no concerns, under the Cannabis Regulations, with the change of control. It also asked to adjourn its WEPP request, as the Attorney General had requested, pending a proposed Synaptive appeal; deferred its termination and bankruptcy requests; and sought a stay to October 29, 2027.
Precedent note
On September 15 Justice Myers approved a reverse vesting order while asking whether its reasons were good ones. Across fifteen proceedings this year, the reasons filed come down to permits and licences that take weeks to a year to replace, tax losses and transfer tax, contracts needing consent, a Crown deemed trust, and buyers who would buy no other way.
Outcome brief
Entourage Health: the Aylmer licences go by reverse vesting order
Five bids came out of a 131-party canvass, and on August 27, 2026 Justice Cavanagh approved the highest, a share subscription by 1000460405 Ontario Inc. that keeps the cannabis licences inside the companies, leaves most of the equipment and the bulk flower behind, carries releases that reach pre-filing excise and GST/HST claims, and extends the stay to October 30 while Health Canada is asked to approve the change of control.
Filing brief
Entourage Health: the lender is also the owner
A union pension fund put equity into a cannabis company in 2019, kept lending, bought out the bank, and took all the shares in 2025. By June 2026 it was owed about $240.1 million by a company it owns — and it applied to put that company into CCAA. The process now being built exists largely to prove it is not being run for the applicant's benefit.
Parties
Debtor
Entourage Health Corp.
Applicant
"2437653 Ontario Inc., an affiliate of the LiUNA Pension Fund of Central and Eastern Canada"
Monitor
EY
Bench and counselPer the orders and service lists on the record
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Cavanagh | Ontario Superior Court of Justice | 4 orders, Aug 2026 | 318 cases on record |
| Justice Myers | Ontario Superior Court of Justice | 4 orders, Jun 2026 | 117 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| MonitorEY | Fasken Martineau DuMoulin LLP | 27 Aug 2026 | Order · 27 Aug 2026 |
| Applicant"2437653 Ontario Inc., an affiliate of the LiUNA Pension Fund of Central and Eastern Canada" | Goodmans LLP | 16 Jun 2026 | Factum · 16 Jun 2026 |
| DebtorEntourage Health Corp. | Dentons Canada LLP | 10 Jul 2026 | Service list · 10 Jul 2026 |
| Purchaser | Miller Thomson LLP | 3 Sep 2026 | Service list · 3 Sep 2026 |
| CreditorAurora Cannabis | Stikeman Elliott LLP | 10 Jul 2026 | Service list · 10 Jul 2026 |
| Creditorsubordinated | Ggfi Law LLP | 10 Jul 2026 | Service list · 10 Jul 2026 |
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| Court-ordered charges | ||||
| 1 | Court-ordered charges | Directors’ Charge — Second – Directors’ Charge (to the maximum amount of $250,000) | $250K | Initial Order |
| 1 | Court-ordered charges | |||
| Pre-filing debt | ||||
| 3 | Deemed trusts (CRA and other) | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
145 more claims in 4 classes The stack holds Court-ordered charges, Deemed trusts (CRA and other), Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
Start 5-day trial
Card required. Nothing charged for 5 days. Cancel anytime.
Already a subscriber? Sign in.
See all plansSale processAs stated in the filings
Approval pending — Health Canada completed its assessment of the change of control transaction for EBC, the licence holder, and had no concerns; the Monitor is working with the Purchaser and the Debtors to close the Transaction as soon as possible.First Supplement to the Third Report of the Monitor · 27 Oct 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| 1000460405 Ontario Inc.the Purchased Shares and Retained Assets · share subscription · ResidualCo: 1001724861 Ontario Inc. · agreement 20 Aug 2026 | Subscribers | Approved27 Aug 2026outside 28 Aug 2026 | Endoresement for Reverse Vesting Order and… |
AdvisorsErnst & Young Parthenon Corporate Finance Inc. (financial advisor)003 Second Report of the Monitor, dated August 20, 2026
Closing termsClosing occurs upon delivery of the Monitor's Certificate confirming satisfaction or waiver of conditions to closing, triggering the Implementation StepsApproval and Reverse Vesting Order, dated August 27, 2026
Sealed materialsConfidential Appendices 1 and 2 to the Second ReportEndoresement for Reverse Vesting Order and Anchillary Relief Order,…
RecoveriesAs stated in the filings
Unsecured creditors: no distribution. 2437653 Ontario Inc. short.EstimatedThird Report of the Monitor · 20 Oct 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| SecuredApplicant (senior secured creditor) | 2437653 Ontario Inc. | — | shortfall | Estimatedper the monitor | 003 Second Report of the Monitor · 20 Aug 2026 |
| Unsecured | creditors of ResidualCo | — | no distribution | Estimatedper the monitor | Third Report of the Monitor · 20 Oct 2026 |
Each row is one filing's statement, copied as it reads and never computed. "Estimated" is the officer's forecast; "Under the plan" is the plan's or proposal's own term; "Final" is a declared or paid distribution; a row with no chip states no footing. A range is the two numbers stated; "of proven claims" is the document's own denominator.
Estate financialsReported figures — never derived
Total assets at filing
Total liabilities at filing
As at ·
The 2 totals the debtor stated at filing
Each one as the filing states it, with its source.
Start 5-day trial
Card required. Nothing charged for 5 days. Cancel anytime.
Already a subscriber? Sign in.
See all plansDocuments
24 filings
| Date | Document | File |
|---|---|---|
First Supplement to the Third Report of the Monitor
| PDF · Subscribers | |
Supplementary Motion Record of the Monitor
| PDF · Subscribers | |
Motion Record of the Monitor
| PDF · Subscribers | |
Third Report of the Monitor
| PDF · Subscribers | |
Service List dated September 3, 2026
| PDF · Subscribers | |
Ancillary Relief Order, dated August 27, 2026
| PDF · Subscribers | |
Approval and Reverse Vesting Order, dated August 27, 2026
| PDF · Subscribers | |
Endoresement for Reverse Vesting Order and Anchillary Relief Order, dated August 27, 2026
| PDF · Subscribers | |
Endorsement of Cavanagh, J., dated August 27, 2026
| PDF · Subscribers | |
| Factum of the Monitor | PDF · Subscribers | |
003 Second Report of the Monitor, dated August 20, 2026
| PDF · Subscribers | |
Motion Record, returnable August 27, 2026
| PDF · Subscribers | |
Service List
| PDF · Subscribers | |
Amended and Restated Initial Order
| PDF · Subscribers | |
SISP Approval Order
| PDF · Subscribers | |
Factum of 2437653 Ontario Inc
| PDF · Subscribers | |
002 First Report of the Monitor
| PDF · Subscribers | |
Creditor List
| PDF · Subscribers | |
| Motion Record of 2437653 Ontario Inc | PDF · Subscribers | |
Endorsement
| PDF · Subscribers | |
Initial Order
| PDF · Subscribers | |
001 Report of the Proposed Monitor
| PDF · Subscribers | |
Factum of the Applicant - 2437653 Ontario Inc
| PDF · Subscribers | |
Application Record - 2437653 Ontario Inc
| PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “Entourage Health Corp.” (CCAA), Ontario Superior Court of Justice · Commercial List. Retrieved 4 November 2026, https://proceedings.ca/case/entourage-health-corp