Notice of Sales and Investment Solicitation Process re: Delta 9 Bio-Tech Inc.
On July 15, 2024, Delta 9 Bio-Tech Inc. (“Bio-Tech”) and four related entities were granted an initial order by the Court of King’s Bench of Alberta (the “Court”) under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”). Alvarez & Marsal Canada Inc. was appointed pursuant to the CCAA as monitor (the “Monitor”).
On July 24, 2024, the Court approved a sales and investment solicitation process (the “SISP”) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of Bio-Tech’s assets and business operations (the “Opportunity”). The Opportunity may include one or more of a restructuring, recapitalization or other form or reorganization of the business and affairs of Bio-Tech as a going concern, or a sale of all, substantially all, or one or more components of Bio-Tech’s assets (the “Property”) and business operations (the “Business”) as a going concern or otherwise.
The Property includes a 95,000 sq ft. Health Canada approved cannabis production facility located at 760 Pandora Avenue East, Winnipeg, MB. The Business has been able to cultivate premium quality cannabis at a cash cost of $0.60 to $0.70/gram with an industry-competitive cost structure (favourable labour, land-leasing, and power cost). Further, an opportunity exists for modest capital investment to expand production and further reduce costs.
Interested parties wishing to pursue the Opportunity are to submit a formal binding offer to the Monitor in accordance with the SISP, by the following deadline:
Bid Deadline: 5:00 p.m. Mountain Time on October 28, 2024
Copies of the SISP Procedure Document and other Court filed materials are available at: https://www.alvarezandmarsal.com/delta9.
Interested parties who wish to obtain additional information and participate in the SISP may contact the Monitor at: delta9@alvarezandmarsal.com.
