British Columbia · CCAA

The purpose of this sixth report (the “Sixth Report”) is to report to the Supreme Court of British Columbia on the outcome of the Monitor’s investigations to date, in accordance with the December 21 Order, and in particular: a) a history of the transactions occurring in 2016 and 2017 related to the reorganization of the various entities involved in the proceedings (the “Reorganization Transactions”); and b) the results of the Monitor’s investigation to date with respect to the following matters: i. the sale or transfer of shares in the capital of Holdings by HFRO to its parent company, Harvest Canada; ii. the solvency of HFRO in or around September 21, 2018, when response materials were filed by HFRO in certain arbitration proceedings involving Mr. Smithers; iii. the lack of notice provided to Mr. Smithers’ in respect of the CCAA Proceedings; and iv. whether any material information was withheld by HFRO when it applied for an order authorizing the Monitor to terminate the Spruce Street Lease (as defined below)

Court officer report · 10 January 2019