Lift & Co. Corp, a cannabis-focused events company based in Canada, has filed for bankruptcy after failing to reach an agreement with its secured creditors and inability to sell its consumer marketing and trade marketing divisions. The company said it owes $3.5 million in secured debts.
The company had announced an “asset light strategy” at the onset of the coronavirus pandemic, meanwhile, unsuccessfully shopping its marketing division. In a press release, the company said it had received seven non-binding offers for the division and was “on the cusp of signing a definitive agreement” to sell the division but, ultimately, “it would not be possible to come to an agreement” with their creditors that would allow the sale.
“Lift & Co. does not have the working capital necessary to repay the amount owing on the secured convertible debentures or to continue carrying on its business. As a result, Lift & Co. has made a voluntary assignment for the benefit of its creditors under section 49 of the Bankruptcy and Insolvency Act (Canada) and all of its directors and officers have resigned.” – Lift & Co. in a statement
The firm said its debentures matured on Sept. 10 and that it had also missed the Sept. 14 deadline for the filing and delivery of its financial statements.
Lift & Co. said the coronavirus pandemic resulted in its cash flow from events “essentially ceasing.”
According to a LiveDesign survey of live events businesses, 76 percent indicated they had lost 75 percent of their business since March. About 71 percent of respondents said their revenues had fallen 75 percent.
Get daily cannabis business news updates. Subscribe