Cannabis Company In Okanagan Working Hard To Revive Business And Avoid Bankruptcy

 

 

 

Amidst a situation where several companies are getting threats of bankruptcy, a North Okanagan cannabis company that is receiving similar threats is working to revive its business.

Earlier this year, True Leaf which had built a production facility in Lumby, B.C., went into creditor protection.

As per the latest reports, the company’s founder has stated that the business has secured new investments and has also made proposals to the creditors to get out of the creditor protection and further avoid bankruptcy.

True Leaf founder Darcy Bomford has said that this process would thereby allow the company to restructure. He also added that this way a lot of debts would hopefully be settles for a sum of money and new capital shall flow into the company and that it will be reorganized and restarted.

Even though True Leaf’s proposals still require approval from the creditors and the court, Bomford is still hopeful that the business shall soon be back on track to produce cannabis in the North Okanagan.

The situation of True Leaf is being closely watched in Lumby as losing the company would be a significant blow to the village’s tax base.

Lumby’s mayor, Kevin Acton has stated that they pay approximately $90000 to $120000 a year in taxes and that they wish to see that the revenue comes into their tax flow. This way they can further do things to beautify Lumby.

Whether True Leaf has gotten the needed approvals to move forward with these proposed restructuring plans to avoid bankruptcy would be revealed in November.

The challenges faced by True Leaf are an example of how dreams of legal cannabis fuelling a green-rush in the Okanagan have stalled.

Bomford said that it is no secret the number of big highs and lows the whole cannabis sector has experienced.

The market has reportedly declined from 2018 to 2019 and since then it has been very hard to secure the capital to continue its growth.

Back in 2018, when True Leaf broke ground on a new Lumby marijuana production facility, the local officials had been hoping that cannabis would bring jobs and thereby boost the tax base.

Moreover, True Leaf did build a facility in Lumby for processing and packaging cannabis with some limited space for growing them but is yet to grow marijuana there.

Bomford has stated that right in the peak of their financial situation has been when they had received the cultivation license post which they just did not have the capital to build out more grow rooms and finance the grow.

He also said that the 18000 square foot facility had only two employees including him.

On the successful completion of the restructuring, Bomford said that the business would likely and initially focus on buying and packaging the product from other producers.