BC Craft Supply Co CRFTF, a British Columbia-based wellness company advancing cannabinoid and psychedelic innovation, filed for temporary protection from creditors under Canada’s Bankruptcy and Insolvency Act while the cannabis company restructures.
BC Craft’s stock, traded on the OTC markets, traded down Wednesday more than 35% on the news. The company warned investors back in August of “significant doubts” that the company would be able to meet business obligations.
If BC Craft is unable to restructure and achieve financing goals, the company will most likely be forced to file for bankruptcy. According to MJBizDaily, BC Craft is the first Canadian cannabis company to file for creditor protection this year.
BC Craft filed losses in 2019 and 2020 respectively, and according to recent filings only had about CA$105,801 in cash.
A number of Canadian companies have requested creditor protection as competition in the cannabis industry ramps up.
In December, British Columbia-based Ascent Industries was granted creditor protection by the Supreme Court of British Columbia.
In 2020, Kitchener, Ontario-based cannabis cultivator James E. Wagner Cultivation (JWC) entered creditor protection as part of a debtor-in-possession loan deal with cannabis sector lender Trichome Financial.
In July 2021, BC Craft announced the Alberta launch of Grizzlers™, a legacy brand of pre-rolled craft cannabis, in association with Think AHLOT Corporation and their $1 “Buck a Joint” S^MPLE by AHLOT program.