Canadian recreational cannabis retailer Tokyo Smoke entered into a share subscription agreement with TS Investments Corp., its parent company. Under the deal, TS Investments will subscribe to all of the issued and outstanding shares of Tokyo Smoke.
The deal is valued at roughly $56.7 million (CA$77 million).
What Happened: Tokyo Smoke, previously owned by Canopy Growth Corporation (NASDAQ:CGC) (TSX:WEED), announced in August that it started restructuring its business and obtained an initial order under the Companies Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice in Canada.
As a result, the company agreed to close 29 of its stores, with the continued operation of approximately 167 locations across Ontario, Manitoba, Saskatchewan, Newfoundland and Labrador.
As part of the stalking horse agreement, the company has received court approval to start a process for selling or restructuring the business. Tokyo Smoke's goal is to explore all options to improve its current situation and is looking for interested buyers or investors who might offer more than what TS Investments is currently offering.
Read Also: Tokyo Smoke To Feature Travis 'Organik' Fleetwood Weed Brand
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you're serious about the business, you can't afford to miss out.
Why It Matters: Tokyo Smoke seeks to align its operations with current market and regulatory conditions.
The company said it plans to exit from CCAA protection as "a stronger business, better positioned to continue providing premium products to its customers over the long-term while continuing to provide jobs to its dedicated employees across Canada," the company said in a press release.
What's Next: The two-phase sale process starts on Friday, Sept.20, including:
Phase I, which is intended to solicit non-binding letters of interest. The deadline to submit letters of interest compliant with the sale process terms is Oct. 21, 2024.
Phase II will solicit binding agreements from compliant parties with bids required to be submitted by Nov. 11, 2024.
Canada's Cannabis Growth Slowed Due To Federal Gov Inaction, Key Industry Leader Says
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
As a result, the company agreed to close 29 of its stores, with the continued operation of approximately 167 locations across Ontario, Manitoba, Saskatchewan, Newfoundland and Labrador.
この結果、同社は29店舗を閉鎖することに同意し、オンタリオ州、マニトバ州、サスカチュワン州、ニューファンドランドおよびラブラドール州全体で約167店舗を継続運営することになりました。
