IGY Life Sciences: 65 parties, three letters of intent, no qualified bid

On March 28, 2026, Brad Trumble, president of IGY Immune Technologies & Life Sciences Inc., wrote to Farm Credit Canada asking for a further modification of the company's loan agreement to give it more time. The company, he wrote, "finds itself in an all [too] familiar position of running short of operating capital." He named two critical issues it had faced in reaching profitability selling Muno-IgY to customers: "Can you prove Muno-IgY works and make 'claims' about it," and "Are you legally allowed to sell the product in my country." An investor was considering a further large investment, the letter said, and would commit US$2.0 million of equity provided FCC agreed to extend interest payments of C$20,000 a month to December 31, 2028 and to start principal payments on January 1, 2030, per the Affidavit of Dale Snider, Apr. 15, 2026, Ex. "N".

FCC filed the letter as an exhibit to the affidavit of Dale Snider of its Special Credit group, sworn April 15, which places the three IGY companies in the biomedical field, "developing and commercializing the novelty IGY antibody, for improvements in healthcare, food nutrition and agriculture," per the Affidavit of Dale Snider, Apr. 15, 2026, para. 9. The receiver's notice to creditors gives the principal line of business as "Nutraceutical egg processing," per the Notice and Statement of Receiver, Apr. 27, 2026, para. 4(b). The relief the letter requested "was significant, and FCC was not prepared to support the same," Mr. Snider swore, though FCC was prepared to show its support if, among other things, the shareholders injected "an additional $2,000,000" (the affidavit does not state a currency). The debtors were not prepared to agree, per the Affidavit of Dale Snider, Apr. 15, 2026, paras. 18–21.

In an email on the morning of April 10, which FCC also put in evidence, Mr. Trumble wrote that he had sent "a response to Dale turning down their last financing offer. Our investors are unwilling to move forward under the proposed structure." That day FCC's counsel, Miller Thomson LLP, demanded $12,179,677.68, with interest accruing at $2,887.42 a day, and FCC served notices of intention to enforce its security. The debtors confirmed, the affidavit says, that they had no funds remaining and no confirmed funding for the payroll of April 20/21; "There are sales receipts and SR&ED grants to come but these will not arrive in time to meet our needs short term," Mr. Trumble wrote. FCC was prepared to finance the payroll, Mr. Snider swore, but not outside a receivership proceeding, and the debtors had waived their ten-day notice period and consented to immediate enforcement, per the Affidavit of Dale Snider, Apr. 15, 2026, paras. 24–26, 28–29, Exs. "O", "P".

On April 17, Justice R.W. Armstrong of the Court of King's Bench of Alberta appointed Alvarez & Marsal Canada Inc. receiver, without security, of the three companies' current and future assets, undertakings and properties under s. 243(1) of the Bankruptcy and Insolvency Act (the BIA), per the Receivership Order, Apr. 17, 2026, para. 2. The receiver's Second Report, dated October 5, records that the sale process it ran from June to the end of August closed without a qualified bid.

Three years of FCC money

The debt traces to a credit agreement of March 22, 2023, under which FCC made available to the three companies, as co-borrowers, loans in the principal amounts of $5,421,333.00, $4,078,667.00 and $500,000.00, per the Affidavit of Dale Snider, Apr. 15, 2026, para. 10. In it the borrowers directed FCC to advance $4,078,667.00 for a "Real Estate/Land Purchase" and $1,584,317 for "Equipment / Machinery." FCC's security includes a $15,000,000 collateral mortgage, granted by IGY Immune Technologies & Life Sciences Inc., over two condominium units at 4 East Lake Avenue NE in Airdrie, per the Affidavit of Dale Snider, Apr. 15, 2026, para. 15(d), Ex. "D", Credit Agreement, ss. 2.2, 3.1(a). The receiver describes the companies' main assets as their real property, including the building at 1A - 4 East Lake Avenue, together with the equipment and machinery located in it, per the Second Report of the Receiver, Oct. 5, 2026, para. 11.

A forbearance agreement followed on July 24, 2024. Its recitals say the borrowers had missed the interest payments due on the first of each month from October 2023 through July 2024 and the principal payments due from April through July 2024, and had not complied with an undertaking to have their shareholders add equity. FCC agreed to waive those defaults on terms that included partial interest payments of C$35,000 a month until July 31, 2026, principal deferred to July 31, 2027, evidence of an equity injection of US$3,000,000 from an investor, and his undertaking to add US$2,000,000 more by September 24, 2024, per the Affidavit of Dale Snider, Apr. 15, 2026, Ex. "E", recitals; Ex. "D", Credit Agreement, Sch. A, s. 9.8. A third amendment of June 26, 2025 cut the partial interest payments to C$20,000, on condition of an equity injection from the same investor of not less than US$1,000,000, per the Affidavit of Dale Snider, Apr. 15, 2026, Ex. "D", Third Amendment to Credit Agreement, art. II, s. 3.1(c).

On the companies' books at the receivership date, the receiver reported, property, plant and equipment carried an estimated book value of $11,642,674 out of $12,204,079 in total assets, and it cautioned that realizable values "may materially differ." The books showed $359,020 owed to unsecured creditors, per the First Report of the Receiver, June 1, 2026, paras. 14–15, among them Business Development Bank of Canada, listed at $133,400, per the Notice and Statement of Receiver, Apr. 27, 2026, Sch. "A".

A process built for a small field

When the receiver asked the court in June to approve a sale and investment solicitation process, it wrote that "the Companies' business is highly specialized and it is anticipated that there is likely a relatively small number of parties who may be interested in participating in the SISP and acquiring the Property in an en bloc transaction." The timetable and the ability to terminate, it said, were designed to help it determine whether an en bloc deal or "multiple individual transactions" were available, "while preserving the ability to move to a liquidation quickly in the event that no acceptable transaction is available," per the First Report of the Receiver, June 1, 2026, para. 30(c). The same report said that in preparation for a potential alternative realization strategy the receiver would hold discussions with auctioneers and commercial real estate professionals, and its list of activities since April 17 included such discussions and walkthroughs of the building, per the First Report of the Receiver, June 1, 2026, paras. 13(p), 29.