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INDEPENDENT ADVISORY AND RESTRUCTURING FIRM

Tel: 123.456.7890

Cannabis

Confidential

Canadian Cannabis Grow Operation

  • Created and executed national marketing strategy including, by not limited to, multiple listings of recreational cannabis and CBD products.

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MedReleaf and Aurora Cannabis

Federally-licensed producer of medical cannabis.

  • Advised on the successful acquisition of MedReleaf by Aurora Cannabis for C$3.2B

Confidential

Overseas real-estate and manufacturing company looking to diversify in Canadian medical cannabis.

  • Advised on the viability of their objectives and provided a clear path forward, including sourcing compliant premises, equipment, personnel, and navigating regulatory challenges.

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Confidential

Publicly traded cannabis company with cultivation projects in ON, NL, and NS.

  • Achieved positive operating cash flow by building a top selling premium brand. Sold the company for C$12.9M

Crop

Publicly traded hemp and cannabis producer with operations in Nevada, Washington, Oklahoma, and California.

  • Onsite assessment of operating entities lead to findings of serious misrepresentations by the US operating partner

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TJAC

Large-scale indoor cannabis producer and exporter.

  • Achieved certifications for international export, overhauled cultivation systems, created new brands with national distribution. Sold the company for C$84M

Trichome Financial / James E. Wagner

Trichome Financial was a specialty lender in the cannabis space and senior secured lender of James E. Wagner. James E. Wagner was an industrial scale indoor cannabis facility with cultivation and processing capabilities

  • Appointed as CRO and navigated first successful exit from CCAA via an asset purchase in the cannabis industry

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MJardin Group

Multi-site cannabis producer with over $200M of Bridging Finance Capital invested.

  • Engaged to perform assessment leading to recommended CCAA. Replaced entire management team. Complete overhaul of organization, cultivation, and commercialization. Currently generating millions of dollars in free cash flow

Confidential

Multi-country cannabis operator with facilities in Israel, Germany, and Canada.

  • Stabilized the business through the CCAA process followed by sale of brands and business. Limited the loss of the asset-based lender

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Green Seal

Multi-site cannabis cultivator and exporter.

  • Engaged as CRO and negotiated with multiple buyers and stakeholders to conclude a successful going concern transaction. Full recover achieved for secured creditors

Cannabis Case Studies

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Crop (2019)

Assessment on Behalf of Major Shareholders of Multi-State Cannabis Operator

  • Publicly traded hemp and cannabis producer with operations in Nevada, Washington, Oklahoma, and California
     

  • Complete disconnect between US operating partner and senior management

  • Significant cash burn

  • Limited industry understanding and experience
     

  • Onsite assessment of operating entities

  • Engaged directly with US operating partner

  • Reported findings to major shareholders and senior creditors

    Uncovered serious misrepresentation by the US operating partner

Confidential (2019 -2020)

Out of Court Operational Restructuring of East Coast Cannabis Company

  • Distressed publicly traded Canadian cannabis company

  • Cultivation projects in ON, NL, and NS
     

  • Lack of funds to fulfil contractual obligations

  • Significant cash burn

  • Hostile partners on various projects

  • In default of senior facility
     

  • Exited the non-performing projects

  • Refocused the business on its core facility

  • Achieved positive operating cash flow by building a top selling premium brand

    Sold for $12.9M in 2020

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Trichome Financial /
James E. Wagner (2020)

CRO of First Successful CCAA Exit in Cannabis

  • Trichome Financial was a specialty lender in the cannabis space and senior secured lender of James E. Wagner

  • James E. Wagner was an industrial scale indoor cannabis facility with cultivation and processing capabilities
     

  • Defaulted on Trichome senior credit facility

  • Reliant on proprietary unreliable aeroponic growing technologies

  • Limited genetic selection, producing poor quality cannabis
     

  • Set up special committee and initiated lender led CCAA process

  • Appointed as CRO and overhauled the organizational chart

  • Engaged with Health Canada to ensure the seamless transition of licenses from one entity to another

  • Structured CCAA exit to allow the intake of fresh genetics vital to the turnaround of the business

    First successful exit from CCAA via an asset purchase in the cannabis industry

TJAC (2020-2021)

Restructuring and Sale of Large-Scale Cannabis Producer
and Exporter

  • Industrial scale indoor cannabis facility
     

  • Limited Canadian distribution channels given the large-scale operation

  • Yields and quality significantly below industry standards
     

  • Assumed CEO and Director roles

  • Achieved certifications required for international export

  • Overhauled cultivation systems and methodology

  • Achieved national distribution of multiple newly created brands

    Sold to multi-country operator for $84M

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Confidential (2022-2023)

CCAA of Canadian Entity of Internationally Based Cannabis Operator

  • Multi-country operator with facilities in Israel, Germany, and Canada

  • Western Ontario cultivation and processing facility with multiple brands in market
     

  • Changing international landscape led to the abandonment of Canadian assets

  • Asset based lending facility in default

  • Failure of SISP process and stalking horse bid abandoned
     

  • Stabilized the business through the CCAA process

  • Obtained DIP financing from the ABL

  • Negotiated successful sale of brands and business

    Limited the loss of the asset-based lender

MPXI (2022)

Advisor to Creditors During Contentious CCAA

  • Multi-country cannabis operator with assets in Canada, Malta, South Africa, and Thailand

  • Involved in cultivation and processing in medical cannabis
     

  • Creditors had no previous cannabis exposure or experience

  • Mistrust between management and lender
     

  • Engaged to assess the viability of the different business units and the capability of senior management

  • Assessed the valuation of inventory

    Identified and recommended a strategic refocus on the company’s core assets in Europe and Canada, resulting in the company being cash flow positive

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Confidential (2023)

Commercial Assessment of Top Canadian Extraction Facility

  • Large-scale hydrocarbon and ethanol cannabis processor

  • Top concentrate brands nationally
     

  • Lack of organizational oversight

  • Lack of clear commercial strategy or planning

  • Poor cash management
     

  • Assessed the processing equipment and capabilities

  • Evaluation of the senior management team

  • Independent review of commercial data to assess their retail strategy

    Provided in-depth recommendations to senior management and major shareholder

MJardin Group (2022-present)

Operational Restructuring of Bridging Finance Cannabis Asset

  • Multi-site cannabis producer with over $200M of Bridging Finance Capital invested
     

  • Failed receivership SISP

  • Significant cash flow burn (~$9M 2022)

  • Ineffective and expensive senior management

  • Complete lack of commercial strategy
     

  • Engaged to perform and assessment and recommended CCAA

  • Replaced entire senior management team

  • Complete overhaul of organization, cultivation processes, and commercialization strategy

    Currently generating millions of dollars of free cash flow

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Green Seal (2024)

Represented Secured Creditors Interests in Multi-Entity CCAA

  • Multi-site cannabis cultivator and exporter

  • Tens of millions of dollars of secured credit
     

  • Multiple secured creditors across different entities with conflicting interests

  • Unrealistic corporate strategy and management forecasts

  • In the event of a liquidation senior creditors would face significant losses
     

  • Engaged as information officer on behalf of secured creditors

  • Performed technical analysis of provincial sales data and RTV risk

  • Review and tested management cash flow forecasts

  • Role evolved to CRO on the recommendation of the secured creditors

  • Negotiated with multiple buyers and stakeholders to conclude a successful going concern transaction

    Full recovery achieved for secured creditors

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© 2024  STEINBERG ADVISORY

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