Alberta · CCAA
Pre-filing report of the proposed Monitor
Pre-filing report · 6 August 2024
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing3 verified
- secured creditorsnote: Initial loan of $1.8 million advanced March 2019; balance grew via additional advances since 2019, 10% administration fee and 15% per annum interest under Forbearance Agreements (July 1, 2023 and Dec 31, 2023) now in default. Security opinion on validity/enforceability of JLL's security has not yet been obtained/confirmed - Monitor intends to instruct counsel to prepare one post-appointment. · page: 9 · as of: 2024-08-03 · amount: 17300000 · debtor: Freedom Cannabis Inc. · creditor: JL Legacy Inc. (JLL) · currency: CAD · security: General Security Agreement dated March 6, 2019; appears to hold a first-ranking general security interest in the Applicant's present and future personal property, based solely on registrations in the Alberta Personal Property Registry (subsequently purchased loans/security from other secured parties)
- financial positionnote: Negative equity (assets less liabilities) of approximately $2.3 million; negative cash balance of approximately $16,000 as at July 31, 2024. Separately, Applicant's unaudited P&L shows net losses of ~$9.6 million (FY23) and ~$6.7 million (YTD through July 2024, in C$000's). · page: 10 · as at: 2024-07-31 · basis: Applicant's internal, unaudited balance sheet (net book value), attached as Exhibit 'C' to the Potestio Affidavit · scope: Freedom Cannabis Inc. (entity-level, per internal balance sheet) · currency: CAD · total assets: 45000000 · total liabilities: 47300000
- secured creditorsnote: Document states Applicant has 'a number of other creditors with registered security interests' in the PPSR; no names or amounts disclosed. · page: 10 · debtor: Freedom Cannabis Inc. · creditor: Unnamed other creditors (registered PPSA security interests) · currency: CAD · security: Registered security interests in the Alberta Personal Property Registry (unspecified collateral)