Flower One Holdings, the publicly traded Canadian parent company of Nevada’s Flower One, has obtained an order under the Companies’ Creditors Arrangement Act (CCAA), a federal statute that governs financial restructuring for insolvent businesses. The move comes ahead of executive plans to take Flower One Holdings private by the end of the year.
“The decision to commence CCAA proceedings was made after careful consideration of the Canadian company’s financial position and significant consultation with certain key creditors of Flower One,” according to a press release issued by the company. “The CCAA proceedings are intended to facilitate a restructuring of the Canadian Company’s balance sheet and the injection of additional capital, with a view of Flower One going private by the end of the 2022 calendar year, thereby eliminating the administrative burden and significant expense associated with being a publicly listed company.”
During this process, the U.S.-based operations of Flower One are expected to continue “in the ordinary course and without interruption.”
A court hearing to lay out the restructuring terms is scheduled for Oct. 25. PricewaterhouseCoopers Inc. will monitor the CCAA process for Flower One Holdings.