The legalization of leisure cannabis in 2018 opened the doorways for Canada to be a first-mover in what analysts predicted can be an thrilling and profitable industry. Although the cannabis industry has skilled vital enterprise progress, latest headwinds have resulted in some cannabis corporations beginning to encounter short-term liquidity challenges as they develop their operations.
Faced with such challenges, licensed cannabis producers should be conscious of restructuring issues and challenges, particularly since the legislative surroundings, at each the federal and provincial ranges, is new territory for enterprise individuals and their skilled advisors.
The authorized and regulatory panorama varies throughout the provinces, which could be of specific concern to corporations working in a number of jurisdictions. The federal authorities, via Health Canada, controls licensing all through the nation. However, the particular person provinces management the distribution of cannabis inside their respective area and the relevant provincial legal guidelines differ significantly all through the nation.
This legislative complexity compounds when the fragmented cannabis rules intersect with the federal insolvency laws. The worth and methodology by which the property of a cannabis enterprise could also be realized can fluctuate significantly, from one area to the subsequent. [Read More @ Denton’s]