PharmHouse Inc., a Canadian cannabis joint venture partly owned by venture capital firm Canopy Rivers, has received an initial court order granting creditor protection while the company explores restructuring. According to a company press release, “The lawsuit alleges that Canopy and its partners conspired to try to force PharmHouse to renegotiate supply contracts after it became clear that the purchase agreement price was higher than the market price.” Canopy Rivers said it considers the claim, “as it relates to the actions of Canopy Rivers to be completely without merit,” and plans to “vigorously defend its position.” On Wednesday, Canopy Rivers said PharmHouse faces “liquidity and capital resource issues” after a timeline for off-take agreements was not met. Attempts to renegotiate the off-take agreements have failed. Canopy Rivers is set to provide as much as 7.2 million Canadian dollars ($5.5 million) in debtor-in-possession financing as the restructuring process proceeds. PharmHouse joins a long list of troubled Canadian cannabis companies that have sought creditor protection in the past year.
Marijuana Business Daily, 09/16/2020 12:27:24