(A model of this story first appeared on Hemp Industry Daily.)

Pyxus International, the first Big Tobacco firm to enter the marijuana and hemp sectors, filed for bankruptcy protection after  the coronavirus pandemic dealt a monetary blow to its operations.

Morrisville, North Carolina-based Pyxus filed a prepackaged plan to cut back debt by $400 million and provides management to a bunch of bondholders, in accordance to The Wall Street Journal.

Pyxus’ Canadian marijuana operations, Prince Edward Island-based Figr, aren’t a part of the bankruptcy submitting, an government instructed Marijuana Business Daily.

The firm additionally grows hemp within the United States.

Known as Alliance One International on the time, Pyxus first entered the hashish trade in 2018 when it purchased Canada’s Island Garden and an 80% stake in Goldleaf Pharm.

At the time of the acquisitions, Island Garden was certainly one of three licensed producers chosen by Canadian regulators to provide Prince Edward Island with hashish, and Goldleaf Pharm had utilized to turn out to be a licensed medical marijuana cultivator in Ontario, Canada.

Pyxus, one of many world’s largest tobacco suppliers, was hit exhausting by declining tobacco consumption and provide disruptions fueled by the COVID-19 pandemic.

The firm trades as PYX on the Nasdaq and New York Stock Exchange.

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