Another cannabis company has seen its assets sold off in connection to creditor protection proceedings. Heritage Cannabis (CSE: CANN) has completed the sales and investment solicitation process in connection with the proceedings, with assets being sold under a stalking horse bid.

Heritage originally entered into CCAA proceedings in early April, following its largest creditor, BJK Holdings, being no longer willing to support the company. BJK was owed at least $6.8 million in secured debt at the time of filing while also being the owner of two operating facilities that Heritage leased. The company meanwhile owed a collective $18.5 million in unsecured debt to various creditors, including $11.8 million to the Canada Revenue Agency in connection with unpaid excise taxes.

HAB Cann Holdings is the new owner of Heritage’s assets, with their stalking horse bid acquiring a number of former subsidiaries of the company, including Heritage, Heritage West, Heritage East, Purefarma, 333 Jarvis, 5450 Realty and Premium 5.

The assets were acquired in exchange for consideration that is equal to the $6.8 million still owed to BJK Holdings, as well as costs equal to the $1.5 million DIP loan, costs related to administrative charges, and amounts related to priority payments. No final number was provided publicly for total consideration.

As a result of the closing of the transaction, all other equity interests of Heritage Cannabis are said to be null and void. As a result, common shares of Heritage have now been delisted by both the CSE as well as the OTC Pink.

Information for this analysis was found via Sedar and Heritage Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.