Proceedings.

Shiny Bud Inc.

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Active
Proceeding
NOIBIA s. 50.4
Court
Ontario Superior Court of Justice
File
BK-24-03084486-0031
Filings held15
Last activity16 Aug 2024
On the record773 days
Secured debt$22.9K
OverviewSummary updated

Shiny Bud Inc. filed a notice of intention to make a proposal under s. 50.4 of the BIA on May 30, 2024, with B. Riley Farber Inc. as Proposal Trustee, in the Ontario Superior Court of Justice (Commercial List) under court file BK-24-03084486-0031. The company reported estimated creditor claims of $14.1 million as at the NOI filing date of May 24, 2024, including approximately $12.4 million in unsecured claims. Evergreen Gap Debt GP Inc., as agent, holds first-ranking security over all personal property, assets and trademarks for $1,591,191 in principal, interest and fees, and is also acting as DIP lender; Shiny Bud is in default for non-payment, covenant breaches and failure to remit source deductions. CRA asserts a $115,399 deemed trust and the Ontario Ministry of Finance a $22,858 EHT lien. The proceeding is active.

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Case updates15 dated entries
#Report

The officer filed report no. Third Report. Shiny Bud continues to operate its 9 remaining Ontario cannabis retail stores while a court-supervised sale process failed to produce a viable third-party bid; the Trustee now recommends a reverse vesting transaction whereby Evergreen (the secured/DIP lender) credit-bids to acquire the shares, with operations, employees and licenses continuing on a going-concern basis.

Source: Third Report of the Proposal Trustee

#Report

The officer filed report no. Second Report. The proposal trustee ran a Sale Process that received no satisfactory bids and was terminated; the company is now negotiating a share subscription/credit bid agreement with its secured DIP lender Evergreen, contemplating a reverse vesting order, while continuing store-level operations under the extended proposal period.

Source: Second Report of the Proposal Trustee

Parties

Debtor

Shiny Bud Inc.

Proposal trustee

GlassRatner

Bench and counselPer the orders and service lists on the record

Bench

JudgeCourtOn this docketCases on record
Justice KimmelOntario Superior Court of Justice2 orders, Aug 2024182 cases on record
Justice SteeleOntario Superior Court of Justice2 orders, Jun 2024220 cases on record

Counsel of record

PartyCounselFirst seenSource
Proposal trusteeGlassRatnerNaymark Law10 Jun 2024Service list · 10 Jun 2024
DebtorShiny Bud Inc.Cassels Brock & Blackwell LLP10 Jun 2024Service list · 10 Jun 2024
Capital structureAs asserted in the filings
stated amounts, drawn to scale
#Priority classCreditorAmountSource
3Deemed trusts (CRA and other)Evergreen Gap Debt GP Inc, as Agent for and on behalf of Evergreen Gap Debt LP and Gap Debt III LPas of NOI Filing Date — First-ranking security interest over all personal property, assets, trademarks and undertaking; loan agreement principal maximum amount of $3,000,000 dated June 17, 2021, as amended April 30, 2022, December 12, 2022, December 28, 2022, February 15, 2024 — Principal amount including interest and fees; Shiny Bud currently in default (failure to pay principal and interest, breach of financial covenants, failure to remit source deductions). Also acting as DIP Lender. — debtor: Shiny Bud Inc.$1.59MFirst Report of the Proposal Trustee
3Deemed trusts (CRA and other)Canada Revenue Agency (CRA) · in 926 casesStatutory deemed trust — Unremitted income tax, CPP and EI amounts; deemed trust class — debtor: Shiny Bud Inc. · as of 27 May 2024$115KFirst Report of the Proposal Trustee
4SecuredOntario Ministry of Finance · in 43 casesPPSA lien registration — Unremitted Employee Health Tax (EHT) amounts — debtor: Shiny Bud Inc. · as of 27 May 2024$22.9KFirst Report of the Proposal Trustee
7Preferred (BIA s. 136)Employees (aggregate) · in 185 casesas of NOI Filing Date — Vacation pay owed to employees; may constitute a preferred class under BIA but not explicitly labelled 'preferred' in text — debtor: Shiny Bud Inc.$98.2KFirst Report of the Proposal Trustee
8UnsecuredShiny Health and Wellness Corpas of NOI Filing Date — Related party: parent company of Shiny Bud — debtor: Shiny Bud Inc.$6.9MFirst Report of the Proposal Trustee
8UnsecuredRichard Espinosas of NOI Filing Date — Shareholder loan; former director of Shiny Wellness (related party/individual) — debtor: Shiny Bud Inc.$1.5MFirst Report of the Proposal Trustee
8UnsecuredMicah Dass · in 2 casesas of NOI Filing Date — Shareholder loan; former director of Shiny Bud (related party/individual) — debtor: Shiny Bud Inc.$1.2MFirst Report of the Proposal Trustee
8UnsecuredFormer landlords (aggregate)as of NOI Filing Date — Back rent owed in connection with leases of closed retail stores; document names no individual creditors — debtor: Shiny Bud Inc.$753KFirst Report of the Proposal Trustee
8UnsecuredCurrent landlords (aggregate)as of NOI Filing Date — Back rent owed in connection with the Stores; document names no individual creditors — debtor: Shiny Bud Inc.$29.7KFirst Report of the Proposal Trustee
Sale processAs stated in the filings

Sale approved — Subscription Agreement and Transactions approved; reverse vesting order grantedOrder of Justice Conway · 16 Aug 2024

Parties solicited

32

Third Report of the Proposal Trustee

NDAs signed

18

Third Report of the Proposal Trustee

Bids received

5

Third Report of the Proposal Trustee

Bid deadline (round closed)

5 July 2024

Order of Justice Steele – June 6 2024

PurchaserPriceStatusSource
1000973177 Ontario LimitedRelated partythe Purchased Shares · share subscription · ResidualCo: Residual Co. · agreement 9 Aug 2024$2.48M (mixed consideration)Cash Consideration paid by the Purchaser to the Proposal Trustee; amount not stated in this documentApproved16 Aug 2024outside 31 Jul 2024Order of Justice Conway
AdvisorsB. Riley Farber Inc. (sale agent)Teaser
Closing termsDelivery of the Proposal Trustee's Closing Certificate confirming satisfaction/waiver of closing conditionsOrder of Justice Conway
Sealed materialsConfidential Appendix attached to the Third ReportOrder of Justice Conway
RecoveriesAs stated in the filings

Unsecured creditors: no recovery.EstimatedThird Report of the Proposal Trustee · 9 Aug 2024

ClassCreditorClaimsRecoveryBasisSource
Court chargespriority payables and BIA charges—paid in fullEstimatedper the proposal trusteeThird Report of the Proposal Trustee · 9 Aug 2024
Unsecured——no recoveryEstimatedper the proposal trusteeThird Report of the Proposal Trustee · 9 Aug 2024

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.

Fees and ratesAs stated in the filings

5 engagements · 2 firms — latest: Naymark Law, 1 May – 31 Jul 2024, $12,604.00 in feesThird Report of the Proposal Trustee · 9 Aug 2024

FirmPeriodHoursFeesRatesSource
B. Riley Farber Inc.Proposal trustee1 May – 26 Jul 2024Sought243.36$134,988.34ex. tax$300 – $7256 peopleThird Report of the Proposal Trustee · 9 Aug 2024
6 people — B. Riley Farber Inc., 1 May – 26 Jul 2024
NameTitleHoursRateFees
Hylton Levy—17.3$725$12,542.50
Richard Williams—13.8$625$8,625.00
Nerina Jahja—91.46$500$45,730.00
L. Samoilov—1$330$330.00
Inna Logashov—3.5$300$1,050.00
Sara Corcoran—0.9$300$270.00
Total—243.36—$134,988.34
Naymark LawCounsel to the trusteeperiod 4 of 41 May – 31 Jul 202424.4$12,604.00ex. tax$600 – $7602 peopleThird Report of the Proposal Trustee · 9 Aug 2024
2 people — Naymark Law, 1 May – 31 Jul 2024
NameYear of callHoursRateFees
Daniel Naymark20094.9$7602021—
James Gibson201219.5$6002021—
Naymark LawCounsel to the trusteeperiod 3 of 42 Jul – 26 Jul 2024—$2,180.43incl. taxnot statedThird Report of the Proposal Trustee · 9 Aug 2024
Naymark LawCounsel to the trusteeperiod 2 of 41 Jun – 30 Jun 2024——$600 – $7602 peopleThird Report of the Proposal Trustee · 9 Aug 2024
2 people — Naymark Law, 1 Jun – 30 Jun 2024
NameTitleHoursRateFees
Daniel Naymark—1.9$760$1,444.00
James Gibson—5.2$600$3,120.00
Naymark LawCounsel to the trusteeperiod 1 of 41 May – 31 May 20249.6$6,144.00ex. tax$600 – $7602 peopleThird Report of the Proposal Trustee · 9 Aug 2024
2 people — Naymark Law, 1 May – 31 May 2024
NameTitleHoursRateFees
Daniel Naymark—2.4$760$1,824.00
James Gibson—7.2$600$4,320.00

Top rate $760 · 43rd percentile of counsel rates, 2024 · of 76

Estate financialsReported figures — never derived
Total liabilities at filing$14.1M

As at 24 May 2024 · per estimated (Company's books and records) - Notice of Intention Filing Date · Shiny Bud Inc. (entity-level, not consolidated with parent Shiny Health and Wellness Corp.) — Component breakdown given without a total for assets: CRA deemed trust ~$115,399; Ministry of Finance EHT ~$22,858; Evergreen secured debt ~$1.59 million; unsecured creditors ~$12.4 million (current landlords $29,708; former landlords $753,033; employees $98,162; related company Shiny Wellness $6.9 million; shareholder loans $1.5 million and $1.2 million).

Cumulative receipts

$866K

As at 2 Aug 2024Second Report of the Proposal Trustee

Cumulative disbursements

$1.3M

As at 2 Aug 2024Second Report of the Proposal Trustee

Cash on hand

$31.1K

As at 2 Aug 2024Second Report of the Proposal Trustee

Professional fees to date

$135K

As at 9 Aug 2024Third Report of the Proposal Trustee

Documents
15 filings
DateDocumentFile
Endorsement of Justice Conway
  • Presiding officer Justice Conway
PDF
Motion Record (returnable August 16, 2024)
  • Appointee B. Riley Farber Inc.
  • Appointee role Proposal Trustee
  • Commencement date 9 August 2024
  • Court SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
  • + 2 more extracted facts
PDF
Order of Justice Conway
  • Closing terms Delivery of the Proposal Trustee's Closing Certificate confirming satisfaction/waiver of closing conditions
  • Purchaser 1000973177 Ontario Limited · the Purchased Shares · share subscription · approved
  • Residualco Residual Co.
  • Sale outcome Sale approved — Subscription Agreement and Transactions approved; reverse vesting order granted
  • + 1 more extracted fact
PDF
Third Report of the Proposal Trustee
  • Fee schedule Engagements: Form: time_summary · Rows: H. Levy; R. Williams; N. Jahja; L. Samoilov; S. Corcoran; I. Logashov; Fees: 134988.34 · Hours: 243.36 · Quote: Total | ... | 243.36 134,988.34 $ · Row kind: subtotal · Rate kind: standard · Name as stated: Total · Money: Tax: $17.8K · Label: HST · Quote: 17,801.58 $ · Fees: $135K · Quote: 243.36 134,988.34 $ · Total: $155K · Quote: 154,736.80 $ · includes tax · includes disbursements · Approximate: false · Disbursements: $1.95K · Quote: 1,946.88 $ · Period: End: 2024-07-26 · Kind: cumulative · Label: Fee Period · Quote: The Proposal Trustee has rendered 3 invoices in this matter, being an invoice for the Fee Period of May 1, 2024 to May 31, 2024 in the total amount of $50,574.86 · Start: 2024-05-01 · Approval: Quote: This affidavit is made in support of a motion to, inter alia, approve the attached accounts of B. Riley and the fees and disbursements detailed therein · State: sought · Averages: — · Currency: · Invoices: Tax: 5818.35 · Fees: 44116.67 · Quote: 50,574.86 $ · Total: 50574.86 · Period end: 2024-05-31 · Period start: 2024-05-01 · Disbursements: 639.84; Tax: 7979.64 · Fees: 60510.42 · Quote: 69,361.50 $ · Total: 69361.5 · Period end: 2024-06-30 · Period start: 2024-06-01 · Disbursements: 871.44; Tax: 4003.59 · Fees: 30361.25 · Quote: 34,800.44 $ · Total: 34800.44 · Period end: 2024-07-26 · Period start: 2024-07-01 · Disbursements: 435.6 · Firm text: B. Riley Farber Inc. · Firm quote: THIRD REPORT OF B. RILEY FARBER INC. IN ITS CAPACITY AS TRUSTEE UNDER THE NOTICE OF INTENTION TO MAKE A PROPOSAL OF SHINY BUD INC. · Hours total: Quote: 243.36 134,988.34 $ · Value: 243.36 · Context quote: I am a Managing Director at B. Riley Farber Inc. (' B. · Comparability quote: I believe that the hours and rates in the attached accounts are reasonable and comparable to other firms in Toronto for work of this nature.; Form: invoice_listing · Rows: Daniel Naymark; James Gibson · Money: Tax: $1.65K · Label: HST · Quote: $1,647.52 · Fees: $12.6K · Quote: $12,604.00 · Total: $14.3K · Quote: $14,328.70 · includes tax · includes disbursements · Approximate: false · Disbursements: $77 · Quote: $77.18 · Period: End: 2024-07-31 · Kind: cumulative · Quote: May 1, 2024 | May 31, 2024 · Start: 2024-05-01 · Approval: State: unstated · Averages: · Currency: · Invoices: Tax: 798.72 · Fees: 6144 · Quote: 2202834 | May 1, 2024 | May 31, 2024 | $6,144.00 | $0.00 | $798.72 | $6,942.72 · Total: 6942.72 · Period end: 2024-05-31 · Period start: 2024-05-01 · Disbursements: 0; Tax: 598.87 · Fees: 4564 · Quote: 2202885 | Jun 1, 2024 | Jun 30, 2024 | $4,564.00 | $42.68 | $598.87 | $5,205.55 · Total: 5205.55 · Period end: 2024-06-30 · Period start: 2024-06-01 · Disbursements: 42.68; Tax: 249.93 · Fees: 1896 · Quote: 2202911 | Jul 1, 2024 | Jul 31, 2024 | $1,896.00 | $34.50 | $249.93 | $2,180.43 · Total: 2180.43 · Period end: 2024-07-31 · Period start: 2024-07-01 · Disbursements: 34.5 · Firm text: Naymark Law · Firm quote: Signature: Daniel Naymark · Hours total: Quote: Total | | | | | 24.4 · Value: 24.4 · Context quote: Lawyers for the Proposal Trustee, B. Riley Farber Inc. · Comparability quote: I believe that the hours and rates in the attached Accounts are reasonable and comparable to other firms in Toronto for work of this nature.; Form: time_summary · Rows: Daniel Naymark; James Gibson · Money: Tax: $799 · Label: HST · Quote: HST | | $798.72 · Fees: $6.14K · Quote: Total Fees | 9.60 | $6,144.00 · Approximate: false · Period: End: 2024-05-31 · Kind: invoice · Quote: Date: 2024/05/31 · Start: 2024-05-01 · Approval: State: unstated · Averages: · Currency: · Invoices: · Firm text: Naymark Law · Firm quote: Signature: Daniel Naymark · Hours total: Quote: Total Fees | 9.60 | $6,144.00 · Value: 9.6 · Context quote: Lawyers for the Proposal Trustee, B. Riley Farber Inc.; Form: time_summary · Rows: Daniel Naymark; James Gibson · Money: Tax: $599 · Label: HST · Quote: Total HST $598.87 · Approximate: false · Period: End: 2024-06-30 · Kind: invoice · Quote: Date: 2024/06/30 · Start: 2024-06-01 · Approval: State: unstated · Averages: · Currency: · Invoices: · Firm text: Naymark Law · Firm quote: Signature: Daniel Naymark · Context quote: Lawyers for the Proposal Trustee, B. Riley Farber Inc.; Form: time_summary · Rows: · Money: Total: $2.18K · Quote: $2,180.43 · includes tax · includes disbursements · Approximate: false · Period: End: 2024-07-26 · Kind: invoice · Quote: For Professional Services rendered during the period July 2, 2024 through July 26, 2024 · Start: 2024-07-02 · Approval: State: unstated · Averages: · Currency: · Invoices: · Firm text: Naymark Law · Firm quote: Signature: Daniel Naymark · Context quote: Lawyers for the Proposal Trustee, B. Riley Farber Inc.
  • Financial position Liabilities $14.1M · as at 24 May 2024 · per estimated (Company's books and records) - Notice of Intention Filing Date · Shiny Bud Inc. (entity-level, not consolidated with parent Shiny Health and Wellness Corp.) — Component breakdown given without a total for assets: CRA deemed trust ~$115,399; Ministry of Finance EHT ~$22,858; Evergreen secured debt ~$1.59 million; unsecured creditors ~$12.4 million (current landlords $29,708; former landlords $753,033; employees $98,162; related company Shiny Wellness $6.9 million; shareholder loans $1.5 million and $1.2 million).
  • Operational summary Shiny Bud continues to operate its 9 remaining Ontario cannabis retail stores while a court-supervised sale process failed to produce a viable third-party bid; the Trustee now recommends a reverse vesting transaction whereby Evergreen (the secured/DIP lender) credit-bids to acquire the shares, with operations, employees and licenses continuing on a going-concern basis.
  • Process results 32 solicited · 18 NDAs · 5 bids · as of 5 Jul 2024
  • + 6 more extracted facts
PDF
Endorsement of Justice Kimmel
  • Presiding officer Justice Kimmel
PDF
Order of Justice Kimmel
  • Presiding officer Justice Kimmel
PDF
Second Report of the Proposal Trustee
  • Cash on hand $31.1K · Note: Ending cash balance as at end of Reporting Period per actuals column · As at: 2024-07-26
  • Disbursements $1.3M · Note: Total outflows for the Reporting Period May 24, 2024 to July 26, 2024 · Since: May 24, 2024 (NOI Filing Date)
  • Financial position Assets $2.25M · Liabilities $14.1M · per book value (assets, after depreciation and amortization); books and records (liabilities) · entity - Shiny Bud Inc. — Assets: 'the book value of the assets of Shiny Bud after depreciation and amortization, is approximately $2,250,223'; Liabilities: 'Shiny Bud owes to its creditors, in the aggregate, approximately $14.1 million'; both as at the NOI Filing Date (May 24, 2024). This data is from the First Kipp Affidavit (Appendix B), not the Second Report itself.
  • Operational summary The proposal trustee ran a Sale Process that received no satisfactory bids and was terminated; the company is now negotiating a share subscription/credit bid agreement with its secured DIP lender Evergreen, contemplating a reverse vesting order, while continuing store-level operations under the extended proposal period.
  • + 4 more extracted facts
PDF
Service List
  • Counsel Cassels Brock & Blackwell LLP
PDF
Endorsement of Justice Steele
  • Presiding officer Justice Steele
PDF
Motion Record (returnable June 6, 2024)
  • Appointee B. Riley Farber Inc.
  • Appointee role Proposal Trustee
  • Commencement date 30 May 2024
  • Court SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
  • + 2 more extracted facts
PDF
Order of Justice Steele – June 6 2024
  • Bid deadline 5 July 2024
  • Order date 6 June 2024
  • Outside date 31 July 2024
  • Presiding officer Justice Steele
  • + 1 more extracted fact
PDF
First Report of the Proposal Trustee
  • Financial position Liabilities $14.1M · as at — · per estimated amount owed to creditors, as reported by Company · Shiny Bud Inc. (entity level) — Total estimated creditor claims of $14.1 million as of NOI Filing Date (May 24, 2024), comprising secured/deemed trust claims and approximately $12.4 million in unsecured claims; no total assets figure stated in these pages.
  • Secured creditors $115K · Note: Unremitted income tax, CPP and EI amounts; deemed trust class · Page: 11 · As of: 2024-05-27 · Debtor: Shiny Bud Inc. · Creditor: Canada Revenue Agency (CRA) · Security: Statutory deemed trust
  • Unsecured creditors $1.2M · Note: Shareholder loan; former director of Shiny Bud (related party/individual) · Page: 12 · As of: NOI Filing Date · Basis: Company's books and records, as reported · Debtor: Shiny Bud Inc. · Creditor: Micah Dass
PDF
Creditors PackagePDF
Certificate of Filing of a Notice of Intention to Make a ProposalPDF
Teaser
  • Bid deadline 5 July 2024
  • Sale advisor B. Riley Farber Inc. (sale agent)
  • Sale outcome Sale process approved — A process is underway to identify one or more purchasers for the assets, business operations or shares of Shiny Bud Inc.
PDF

Filing titles, dates, and extracted key facts are public.

CiteProceedings., “Shiny Bud Inc.” (NOI), Ontario Superior Court of Justice. Retrieved 20 September 2026, https://proceedings.ca/case/shiny-bud-inc

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Sources last checked · summary updated 19 August 2026 · Report a correction · Printed from proceedings.ca/case/shiny-bud-inc

Facts and summaries are extracted automatically from the court filings linked on each page; the filings remain the authoritative record. Suggested corrections are reviewed against the source filings.