Jeffrey Simpson speaks to Marijuana Business Daily about struggling US cannabis companies
Jeffrey Simpson of Torkin Manes' Banking, Finance and Insolvency Group, spoke to Marijuana Business Daily about struggling US cannabis companies potentially looking to Canada for possible bankruptcy protection.
With capital constraints a growing factor in the marijuana industry, U.S. cannabis companies facing financial pressure are increasingly eyeing Canadian bankruptcy protection as a possible solution to their problems.
Canadian bankruptcy might provide an option for U.S. businesses that have Canadian operations, or they might go down such a route if their stocks are listed on an exchange such as the Canadian Securities Exchange.
But multiple caveats exist.
Indeed, lawyers say the listing qualification is unlikely to be enough purely on its own.
“A Canadian listing is not sufficient in itself,” said Jeffrey Simpson, a partner at the Banking, Financing and Insolvency group of Toronto-based Torkin Manes. “The debtor company typically needs to be a Canadian-incorporated entity or have the majority of its business operations in Canada.”
This article was originally published in the Marijuana Business Daily.
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