The True Leaf Campus in Lumby is an 18,000-square-foot facility designed and licensed to cultivate, process and sell cannabis. (File photo)

North Okanagan cannabis company in bankruptcy

True Leaf Cannabis Inc. owns 18,000-square-foot facility in Lumby

Less than two years after constructing an 18,000-square-foot facility in Lumby, a North Okanagan-based cannabis company now finds itself in the middle of bankruptcy proceedings.

In a Monday, Oct. 5 press release, True Leaf Cannabis Brands Inc. updated shareholders on its recent efforts to exit bankruptcy.

The company’s three subsidiaries — True Leaf, True Leaf Cannabis Inc. and True Leaf Investments Corp. — filed proposals to creditors with the Office of Superintendent in Bankruptcy Canada between Sept. 23 and Oct. 2.

The purpose of the proposals is to allow Canguard Mortgage Investment Corporation to “acquire the assets and the shares of the companies and allow for the companies to emerge from their respective proposal proceedings,” the press release states.

The True Leaf Campus in Lumby was designed to cultivate, process and sell cannabis, and the company obtained Health Canada licences to do so in November 2019.

True Leaf is under a temporary management cease trade order, which it requested from the B.C. Securities Commission after missing the Sept. 14 deadline for filing its audited financial statements. The company says it is working with its auditor to complete its annual filings.

True Leaf’s CEO and CFO are prevented from trading shares in the company for as long as the cease trade order remains in effect.

The company has cited the COVID-19 pandemic and internal reorganizations as reasons for missing the deadline.

“Both events have impacted the company’s ability to complete its audited annual financial statements and has consequently caused a delay in completion of the annual filings,” a Sept. 15 company press release reads.

The company’s efforts to restructure and refinance debt include selling its pet supplement business, True Leaf Pet Inc., in a deal announced in late August.

READ MORE: Cannabis cultivation, extraction facilities planned for Salmon Arm

READ MORE: B.C. unveils new cannabis sales programs to help small, Indigenous growers


Brendan Shykora
Reporter, Vernon Morning Star
Email me at Brendan.Shykora@vernonmorningstar.com
Follow us: Facebook | Twitter

Bankruptcies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

On Nov. 8, 2017 as the search was called off, white tents and black privacy fencing were no longer visible at the Sagmoen farm in Silver Creek and fewer police vehicles were present. (File photo)
Several police vehicles seen at and around Sagmoen farm in Shuswap Thursday night

RCMP at Silver Creek property where the remains of an 18-year-old Vernon woman were found in 2017

The Downtown Vernon Association is requesting free parking on Saturdays in 2021 to boost recovery efforts of businesses amid the COVID-19 pandemic. (Caitlin Clow - Vernon Morning Star)
Free Saturday parking in Vernon must wait for budget talks

Downtown Vernon Association request to boost shopping local amid pandemic

RCMP. (Phil McLachlan - Black Press Media)
Crime up 31 per cent in Vernon in 2019: Statistics Canada

Increase includes a 45 per cent rise in violent Criminal Code violations

City of Vernon councillors vote in favour of extending opportunities to activate outdoor spaces and patios until Oct. 31, 2021, in its Oct. 26, 2020, meeting of council. (City of Vernon - Contributed)
Vernon patio season extended amid COVID-19

City extends temporary measures to boost local businesses downtown

Four staff members at the Okanagan Men’s Centre have tested positive for COVID-19 since Oct. 23, 2020. (Adult and Teen Challenge OMC photo)
Four positive COVID-19 cases at Okanagan Men’s Centre

Those affected are staff and have been in isolation since Oct. 23

A woman wears a face mask and plastic gloves while browsing books as a sticker on the floor indicates a one-way direction of travel between shelves of books at the Vancouver Public Library’s central branch, after it and four other branches reopened with limited services, in Vancouver, on Tuesday, July 14, 2020. (THE CANADIAN PRESS/Darryl Dyck)
B.C. reports 234 new COVID cases, 1 death of senior who had attended small birthday party

Roughly 5,700 people are isolating due to being exposed to a confirmed case

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Superintendent of the Kelowna RCMP, Kara Triance. (Capital News file)
Non-violent crime, small population contributes to Kelowna’s crime rate spike, says RCMP

Kelowna RCMP is assuring the public the city is a safe place

A Tuesday Oct. 27, 2020 apartment fire in Penticton killed two and displaced dozens more. (Brennan Phillips - Western News)
Fatal Penticton apartment fire deemed accidental

The blaze gutted an apartment building on Tuesday morning, killing two people and displacing dozens

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. THE CANADIAN PRESS/Paul Chiasson
Interior Health reports seven more COVID-19 cases

Eighty-nine cases remain active, none of whom are currently hospitalized

Burnaby RCMP responded to a dine-and-dash suspect who fell through a ceiling in March 2020. (RCMP handout)
VIDEO: Suspected dine-and-dasher falls through ceiling of Burnaby restaurant

A woman believed to be dashing on her restaurant bill fell through the kitchen ceiling

This Photoshopped version of the crosswalks near the entrance to the Salmon Arm Arts Centre on Hudson Avenue show what is proposed to help create safety for and show inclusivity to the LGBTQ2S+ community. (Salmon Arm Arts Centre image)
Tri-rainbow crosswalk and Progress flag requested to help make Salmon Arm safe

Council will consider budget requests to help make city inclusive to LBGTQ2S+ community

A can of Canada Dry Ginger Ale is shown in Toronto on Thursday Oct. 29, 2020. The maker of Canada Dry Ginger Ale has agreed to pay over $200,000 to settle a class-action lawsuit launched by a B.C. man who alleged he was misled by marketing suggesting the soda had medicinal benefits. THE CANADIAN PRESS/Joseph O’Connal
B.C. man’s lawsuit over marketing of Canada Dry ginger ale settled for $200K

Soda’s maker, Canada Dry Mott’s Inc., denied the allegations and any liability

Animal care manager Tracy Reynolds confirmed the lynx is the same wildcat that was spotted wandering North Kamloops in broad daylight on Sunday, Oct. 25. BC Wildlife Park.
Lynx found wandering Kamloops taken to BC Wildlife Park

While the lynx’s outward appearance was deemed normal, it actually had an abdominal infection

Most Read