Proceedings.

Tantalus Labs Ltd

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Proceeding
NOIBANKRUPTCY AND INSOLVENCY ACT, RSC 1985, c. B-3, AS AMENDED
Court
Supreme Court of British Columbia
File
B-230269
Industry
Cannabis · Cannabis producers
Filings held47
Last activity18 Sep 2023
On the record1,226 days
Secured debtSubscribers
OverviewSummary updated

Tantalus Labs Ltd. filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act on June 28, 2023 in the Supreme Court of British Columbia, file B-230269, with Ernst & Young Inc. acting as proposal trustee. A Statement of Affairs (Business Bankruptcy) stated as at August 28, 2023, the stated date of bankruptcy, shows total assets of $10,208,736.00 against total liabilities of $14,165,942.37 and a deficiency of $3,957,206.37 on Form 78. Unsecured claims total $8,579,133.88, led by the Receiver General for Canada at $4,473,081.55, two Western Economic Diversification Canada claims of $974,579.00 and $838,000.00, and Health Canada at $388,490.66. Sungrown Mortgage Corporation is shown as fully secured for $5,586,808.49 against the Maple Ridge land and building, cash, accounts receivable and machinery. The proceeding is active.

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Case updates47 dated entries
#Report

The officer filed a report. Tantalus is no longer operating; the Receiver has kept the Maple Ridge facility in cold hibernation (~$7.5k/month) while collecting receivables and working with a broker/auctioneer to sell the facility and equipment under a signed agreement expected to close in early November 2023.

Source: First Report of the Trustee on its Preliminary Administration

#Sale

The court granted an approval and vesting order for the sale to Atlantic Cultivation Ltd. Closing terms, as extracted: Vesting occurs upon delivery of the Proposal Trustee's Certificate confirming payment of the purchase price and completion of the Transaction; the Proposal Trustee may extend the Closing Date with the Purchaser's consent. Sealed: Fourth Affidavit of Dan Sutton, sworn July 9, 2023, containing the Sale Agreement as Confidential Exhibit 'C'.

Source: Sale Approval and Vesting Order

#Report

The purpose of this supplement to the First Report (the “Supplement to the First Report”) is to provide this Honourable Court with information pertaining to: a) Tantalus’ sale process undertaken commenced on July 6, 2023, for the sale of the Bulk Cannabis Inventory (defined below) held by Tantalus (the “Sales Process”); b) Tantalus’ sale transaction (the “Sale Transaction”) contemplated by a purchase order effective July 7, 2023 (the “Purchase Agreement”) between Tantalus, as vendor and Atlantic Cultivation Ltd. (the “Purchaser”), as purchaser, for the sale of the Bulk Cannabis Assets (as defined below); and c) recommendations of the Proposal Trustee — Court officer report

PDF · Subscribers

#Report

The Purpose of this first report of the Proposal Trustee (the “First Report”) is to advise this Honourable Court with respect to, inter alia, the following: a) the background of Tantalus; b) the financial position and causes of insolvency; c) the assets and liabilities of the Company: d) communications with CRA and Sungrown; e) the activities undertaken by the Proposal Trustee in accordance with the provisions of the BIA; f) the Company’s projected cash flows (the “First Report Cash Flow Projections”) for the 13-week period from June 28, 2023 to September 27, 2023 (the “Cash Flow Period”); g) an overview of the proposed KERP and related KERP Charge; h) an overview of the proposed Success Fee; i) an overview of the Company’s request for relief under the WEPPA; j) an update on the Company’s efforts to market and sell Tantalus’ assets or shares during the NOI proceedings; k) a summary of the charges sought, including the KERP Charge, the Administration Charge, and the Directors’ and Officers’ Charge (all defined below); and l) the Proposal Trustee’s Recommendations — Court officer report

PDF · Subscribers

AnalysisAll insights⁠

Guide

Division 1 proposal: how it works for a business in Canada

When a Canadian business can't pay its debts, a Division 1 proposal lets it keep operating while it offers creditors a deal. How the notice of intention, the six-month clock, the vote and court approval work, what CRA must be paid, and what happens when it fails, drawn from the court record.

Parties

Debtor

Tantalus Labs Ltd

Proposal trustee

EY

Bench and counselPer the orders and service lists on the record

Bench

JudgeCourtOn this docketCases on record
Justice FitzpatrickSupreme Court of British Columbia6 orders, Jul 202360 cases on record

Counsel of record

PartyCounselFirst seenSource
Proposal trusteeEYNathanson Schachter & Thompson LLP13 Jul 2023Service list · 13 Jul 2023
ApplicantTantalus Labs LtdMLT Aikins LLP10 Jul 2023Factum · 27 Jul 2023
Secured creditorSungrown Mortgage CorporationDentons Canada LLP13 Jul 2023Service list · 13 Jul 2023
Capital structureAs asserted in the filings
stated amounts, drawn to scale · for subscribers
#Priority classCreditorAmountSource
4SecuredSungrown Mortgage CorporationReal Property or Immovable - Building and Land - Maple Ridge; also Cash on hand, Debts Due - Business - Accounts receivable, Business Assets - Machinery — Balance of claim per Statement of Affairs List B is $0.00 (fully secured by estimated value of security $5,586,808.49); date of bankruptcy August 28, 2023 — debtor: Tantalus Labs Ltd. · as of 28 Aug 2023$5.59MNotice to Creditors (Bankruptcy)
8Unsecured
8Unsecured
8Unsecured
8Unsecured
8Unsecured
8Unsecured
8Unsecured
8Unsecured
8Unsecured

104 more claims in 1 class The stack holds Secured and Unsecured claims.

Every creditor and every amount, drawn to scale.

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Sale processAs stated in the filings

9 transactions · 6 approved · 2 closed · 1 proposed — the Trustee does expect that the Receiver will sell the Facility in the coming monthsFirst Report of the Trustee on its Preliminary Administration · 18 Sep 2023

Bids received

4

Third Report of the Proposal Trustee

PurchaserPriceStatusSource
Atlantic Cultivation Ltd.the assets described in the Sale Agreement (the ' Purchased Assets ') · asset sale · agreement 7 Jul 2023SubscribersClosed23 Jul 2023Second Report of the Proposal Trustee
Purchasing Employees, current or former employees of Tantalus buying used equipmentRelated partyEmployee Equipment (laptops and miscellaneous equipment, tools and electronics) · asset saleSubscribersProposedSecond Report of the Proposal Trustee
Atlantic Cultivation Ltd.the assets described in the Cannabis Agreement (the "Cannabis Assets") · asset sale · agreement 19 Jul 2023SubscribersApproved27 Jul 2023Filed Order re Stay Extension, Sales…
Revelation Machinery, LLCa Paxiom Filling Machine with a conveyor belt and scale bearing serial number 5315 (the "Paxiom Machine") · asset sale · agreement 17 Jul 2023SubscribersApproved27 Jul 2023Filed Order re Stay Extension, Sales…
employees of Tantalus purchasing office/equipment items, individually named in scheduleoffice equipment, maintenance equipment, and computer and other technology equipment (the "Tantalus Employee Equipment") · asset saleSubscribersApproved27 Jul 2023Filed Order re Stay Extension, Sales…
Sungrownthe Employee Equipment Transactionnot statedCloseddate not statedThird Report of the Proposal Trustee
Atlantic Cultivation Limitedthe assets described in the Asset Agreement (the "Purchased Assets") · asset sale · agreement 29 Jul 2023SubscribersApproved25 Aug 2023Filed Order approving Asset and Share Auction…
Yaletown Innovation Growth II Limited Partnershipthe assets described in the Share Agreement (the "Purchased Shares") · share sale · agreement 22 Aug 2023SubscribersApproved25 Aug 2023Filed Order approving Asset and Share Auction…
purchaser(s) or nominees of the Auction Assets at Auction, unnamedall the remaining personal property of Tantalus, excluding personal property sold as part of a transaction involving the real property of Tantalus (the "Auction Assets") · auction · agreement 17 Jul 2023not statedApproved25 Aug 2023Filed Order approving Asset and Share Auction…
AdvisorsBC Farm & Ranch Realty Corp. (listing broker); Able Solutions Inc., operating as Able Auctions (auctioneer); broker and auctioneer (auctioneer)First Report of the Trustee on its Preliminary Administration
Closing termsVesting occurs upon delivery of certificates confirming payment of purchase price and completion; closing dates may be extended by consent of the parties and the Lender.Filed Order approving Asset and Share Auction Agreement and amending…
Sealed materialsFourth Affidavit of Dan Sutton, sworn July 9, 2023, containing the Sale Agreement as Confidential Exhibit 'C'; Sutton #4 Affidavit; Sixth Affidavit of Dan SuttonSale Approval and Vesting Order
RecoveriesAs stated in the filings

Unsecured creditors: no distribution.EstimatedFirst Report of the Trustee on its Preliminary Administration · 18 Sep 2023

ClassCreditorClaimsRecoveryBasisSource
Securedsecured claims against the Estate—shortfallconditionalEstimatedper the trusteeFirst Report of the Trustee on its Preliminary Administration · 18 Sep 2023
Unsecuredunsecured creditors of the estate—no distributionconditionalEstimatedper the trusteeFirst Report of the Trustee on its Preliminary Administration · 18 Sep 2023

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 ·

Cash on hand

$3.14M

As at 18 Sep 2023First Report of the Trustee on its Preliminary Administration

The 2 totals the debtor stated at filing

Each one as the filing states it, with its source.

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Documents
47 filings
DateDocumentFile
First Report of the Trustee on its Preliminary Administration
  • Cash on hand · Disbursements · Financial position · Operational summary Subscribers
  • + 7 more extracted facts
PDF · Subscribers
Affidavit of Publication (Bankruptcy Notice)PDF · Subscribers
Affidavit of MailingPDF · Subscribers
Notice to Creditors (Bankruptcy)
  • Financial position · Secured creditors · Unsecured creditors Subscribers
PDF · Subscribers
Proof of Claim formPDF · Subscribers
Proxy formPDF · Subscribers
Certificate of AppointmentPDF · Subscribers
Filed Order approving Asset and Share Auction Agreement and amending success fee
  • Closing terms Vesting occurs upon delivery of certificates confirming payment of purchase price and completion; closing dates may be extended by consent of the parties and the Lender.
  • Order date 25 August 2023
  • Presiding officer Justice Milman
  • Purchaser Atlantic Cultivation Limited · the assets described in the Asset Agreement (the "Purchased Assets") · asset sale · approved; Yaletown Innovation Growth II Limited Partnership · the assets described in the Share Agreement (the "Purchased Shares") · share sale · approved; purchaser(s) or nominees of the Auction Assets at Auction, unnamed · all the remaining personal property of Tantalus, excluding personal property sold as part of a transaction involving the real property of Tantalus (the "Auction Assets") · auction · approved
  • + 3 more extracted facts
PDF · Subscribers
Third Report of the Proposal Trustee
  • Closing confirmed Closed · date not stated · Sungrown
  • Process results 4 bids · as of 14 Jul 2023
  • Purchaser Atlantic · the Brand and Other Assets · asset sale · proposed; Yaletown LP · the Elevated Shares · share sale · proposed; end purchasers at auction, unnamed · the Auction Assets · auction · proposed
  • Sale advisor Able Solutions Inc., operating as Able Auctions (auctioneer)
  • + 1 more extracted fact
PDF · Subscribers
Application Record
  • Counsel How: operator-correction · Firm: MLT Aikins LLP · Corrects: firm · For role: applicant · For text: Applicant · Firm party id: d4cf1950-4692-4504-a26b-b5fcb16b39c9 · Was firm party id: 59d54bdb-1a6e-4ea3-bd12-c7aa86f3d71a
PDF · Subscribers
Notice of Application - Sale Transactions, Auction Approval, Success FeePDF · Subscribers
Seventh Affidavit of Dan SuttonPDF · Subscribers
Application Record and Book of Authorities - July 27, 2023
  • Counsel How: operator-correction · Firm: MLT Aikins LLP · Corrects: firm · For role: applicant · For text: Applicant · Firm party id: d4cf1950-4692-4504-a26b-b5fcb16b39c9 · Was firm party id: 59d54bdb-1a6e-4ea3-bd12-c7aa86f3d71a
PDF · Subscribers
Fifth Affidavit of Dan Sutton (July 25, 2023)PDF · Subscribers
Filed Order re Stay Extension, Sales Transactions, Success Fee
  • Closing terms Liberty to extend closing date by consent of Proposal Trustee, lender, and purchasers
  • Order date 27 July 2023
  • Presiding officer Justice Fitzpatrick
  • Purchaser Atlantic Cultivation Ltd. · the assets described in the Cannabis Agreement (the "Cannabis Assets") · asset sale · approved; employees of Tantalus purchasing office/equipment items, individually named in schedule · office equipment, maintenance equipment, and computer and other technology equipment (the "Tantalus Employee Equipment") · asset sale · approved; Revelation Machinery, LLC · a Paxiom Filling Machine with a conveyor belt and scale bearing serial number 5315 (the "Paxiom Machine") · asset sale · approved
  • + 2 more extracted facts
PDF · Subscribers
Filed Sealing Order re 6th AffidavitPDF · Subscribers
Notice of Application - Stay Extension and Sale Transactions
  • Applicant Tantalus Labs Ltd.
  • Court IN THE SUPREME COURT OF BRITISH COLUMBIA
  • Court file no B-230269
PDF · Subscribers
Second Report of the Proposal Trustee
  • Closing confirmed Closed · 23 Jul 2023 · Atlantic Cultivation Ltd.
  • Process results 80 solicited · as of 30 Jun 2023
  • Purchaser Atlantic Cultivation Ltd. · Remaining Cannabis Inventory · asset sale · proposed; Atlantic Cultivation Ltd. · Brand and Other Assets (goodwill, trademarks, brand assets, marketing materials, intellectual property, SKUs and the Kung Tech Pre-roll Machine) · asset sale · proposed; Revelation · Paxiom Machine · asset sale · proposed; Purchasing Employees, current or former employees of Tantalus buying used equipment (related party) · Employee Equipment (laptops and miscellaneous equipment, tools and electronics) · asset sale · proposed
  • Recovery outcome Entries: per liquidation_alternative · Table missing:
  • + 2 more extracted facts
PDF · Subscribers
Proposal Trustee's Certificate - Sale of Bullk Inventory
  • Closing confirmed Closed · 23 Jul 2023 · Atlantic Cultivation Ltd.
PDF · Subscribers
Order re KERP, WEPPA, Success Fee
  • Presiding officer Justice Fitzpatrick
PDF · Subscribers
Sealing order - Affidavit of Dan Sutton #2PDF · Subscribers
Service List as at
  • Counsel Dentons Canada LLP
PDF · Subscribers
Notice of Application (KERP, ADMIN, & D&O CHARGE)PDF · Subscribers
Order re Admin, D&O, and KERP Charge
  • Presiding officer Justice Fitzpatrick
PDF · Subscribers
Sealing Order - KERP Charge
  • Presiding officer Justice Fitzpatrick
PDF · Subscribers
Filed Order after Application - Bulk Inventory Sale Approval
  • Counsel Mlt Aikins LLP
PDF · Subscribers
Filed Sealing Order - Affidavit of Dan Sutton #4PDF · Subscribers
Attorney General of Canada Response (CRA Response)PDF · Subscribers
First Affidavit of Dan SuttonPDF · Subscribers
First Affidavit of Vani PuttiPDF · Subscribers
Sale Approval and Vesting Order
  • Closing terms Vesting occurs upon delivery of the Proposal Trustee's Certificate confirming payment of the purchase price and completion of the Transaction; the Proposal Trustee may extend the Closing Date with the Purchaser's consent.
  • Order date 10 July 2023
  • Presiding officer Justice Fitzpatrick
  • Purchaser Atlantic Cultivation Ltd. · the assets described in the Sale Agreement (the ' Purchased Assets ') · asset sale · approved
  • + 3 more extracted facts
PDF · Subscribers
Sealing Order - Sale Approval
  • Order date 10 July 2023
  • Presiding officer Justice Fitzpatrick
  • Sealed items Sutton #4 Affidavit
  • Stalking horse Subscribers
PDF · Subscribers
The purpose of this supplement to the First Report (the “Supplement to the First Report”) is to provide this Honourable Court with information pertaining to: a) Tantalus’ sale process undertaken commenced on July 6, 2023, for the sale of the Bulk Cannabis Inventory (defined below) held by Tantalus (the “Sales Process”); b) Tantalus’ sale transaction (the “Sale Transaction”) contemplated by a purchase order effective July 7, 2023 (the “Purchase Agreement”) between Tantalus, as vendor and Atlantic Cultivation Ltd. (the “Purchaser”), as purchaser, for the sale of the Bulk Cannabis Assets (as defined below); and c) recommendations of the Proposal Trustee
  • Process results 5 bids · as of 7 Jul 2023
  • Purchaser Atlantic Cultivation Ltd. · the Bulk Cannabis Assets · asset sale · proposed
  • Recovery outcome Entries: per liquidation_alternative · Stated on: 2023-07-09 · Table missing:
  • Sale outcome Approval pending — Sale Transaction pending court approval
  • + 1 more extracted fact
PDF · Subscribers
Third Affidavit of Dan Sutton sworn July 9, 2023PDF · Subscribers
First Affidavit of Lucas JenkinsPDF · Subscribers
Form 29 - Trustee's Report on the Cash FlowPDF · Subscribers
Form 30 - Company's Report on the Cash FlowPDF · Subscribers
Notice of Application - short leave
  • Applicant Tantalus Labs Ltd.
  • Appointee Ernst & Young Inc.
  • Appointee role proposal trustee
  • Commencement date 28 June 2023
  • + 4 more extracted facts
PDF · Subscribers
The Purpose of this first report of the Proposal Trustee (the “First Report”) is to advise this Honourable Court with respect to, inter alia, the following: a) the background of Tantalus; b) the financial position and causes of insolvency; c) the assets and liabilities of the Company: d) communications with CRA and Sungrown; e) the activities undertaken by the Proposal Trustee in accordance with the provisions of the BIA; f) the Company’s projected cash flows (the “First Report Cash Flow Projections”) for the 13-week period from June 28, 2023 to September 27, 2023 (the “Cash Flow Period”); g) an overview of the proposed KERP and related KERP Charge; h) an overview of the proposed Success Fee; i) an overview of the Company’s request for relief under the WEPPA; j) an update on the Company’s efforts to market and sell Tantalus’ assets or shares during the NOI proceedings; k) a summary of the charges sought, including the KERP Charge, the Administration Charge, and the Directors’ and Officers’ Charge (all defined below); and l) the Proposal Trustee’s RecommendationsPDF · Subscribers
Notice to CreditorsPDF · Subscribers
Cash Flow - Inventory Fire SalePDF · Subscribers
Cash Flow - Orderly SalePDF · Subscribers
Certificate for the Notice of IntentionPDF · Subscribers
Creditor List as atPDF · Subscribers
Form 33
  • Appointee Ernst & Young Inc.
  • Appointee role trustee
  • Commencement date 28 June 2023
  • Province British Columbia
  • + 1 more extracted fact
PDF · Subscribers
Notes to the First Report Cash Flow ProjectionsPDF · Subscribers
Statement of AffairsPDF · Subscribers

Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.

CiteProceedings., “Tantalus Labs Ltd” (NOI), Supreme Court of British Columbia. Retrieved 4 November 2026, https://proceedings.ca/case/tantalus-labs-ltd

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Sources last checked · summary updated 21 August 2026 · Report a correction · Printed from proceedings.ca/case/tantalus-labs-ltd

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.