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Craft cannabis cultivator Atlantic Cultivation is acquiring the brand of insolvent marijuana producer Tantalus Labs, the companies announced Monday.
British Columbia-based Tantalus in June filed a Notice of Intent for Restructuring in Canadian court after racking up significant debt, mostly to the federal government.
Atlantic Cultivation, based in St. John’s, Newfoundland, said its deal to buy some of the distressed company’s assets includes its brands and remaining inventory – but not the Tantalus facility in British Columbia.
The financial terms of the deal were not disclosed.
Both companies are privately owned.
“Atlantic’s dedication to quality, community, and providing access to premium cannabis products, which contribute to fostering an inclusive and flourishing craft cannabis industry, solidifies our collaboration with Tantalus,” Atlantic’s founder and chief operating officer, Chris Crosbie, said in a statement.
“This acquisition is founded upon our shared values, reflecting our unwavering commitment. We persist in our mission to elevate cannabis quality and ensure its widespread accessibility.”
Tantalus laid off more than 50 employees in June.
A number of Canadian cannabis companies have gone out of business this year, with a substantial portion of their debts owed to the Canadian government.
In July, Concord, Ontario-based cannabis company Aleafia Health entered creditor protection.
The company had unsecured obligations totaling almost 30 million Canadian dollars ($22 million) with the federal government accounting for just over half of that, or CA$15.8 million.
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