Wildflower Brands Inc.

Wildflower Brands Inc. has been under the receivership of Ernst & Young Inc. since March 10, 2023, when the Supreme Court of British Columbia in Bankruptcy and Insolvency appointed the firm receiver and manager in court file B-220360, on the petition of senior secured creditor Vortep Kasi Holdings Inc. and Daniel Petrov. The appointment was sought under section 243(1) of the Bankruptcy and Insolvency Act, section 39 of the Law and Equity Act, section 66 of the Personal Property Security Act and Rule 10-2(1) of the Supreme Court Civil Rules. Vortep and Petrov were owed $1,836,817 at commencement under a secured convertible debenture dated July 31, 2020 with an initial principal balance of $3,500,000. The Receiver's First Report estimated outstanding obligations of City Cannabis Corp. at approximately $2,700,000, excluding unliquidated damages claims, and accrued WMI Consulting Ltd. liabilities in excess of USD $475,000. A Canada Revenue Agency deemed trust claim of approximately $24,000 for unpaid source deductions is a permitted encumbrance under the Vortep Agreement. The proceeding remains active.