SLANG Worldwide Inc. (CSE:SLNG) (OTCQB:SLGWF) confirmed Tuesday it is entering receivership in Colorado and declared bankruptcy in Canada. The Toronto-based cannabis company finalized a wind-down plan for its assets and subsidiaries with its secured lenders. This decision follows the company's expectation that it will not be able to repay amounts owed under its credit agreement, which matures on Nov. 15, 2024.

Under the wind-down plan, the company will pursue several steps. It plans to dispose of its Colorado assets through a receivership process involving its Colorado subsidiaries. In Canada, the company will file for bankruptcy under the Bankruptcy and Insolvency Act. In Vermont, its subsidiaries may sell their assets, with any remaining assets assigned for the benefit of creditors, pending local regulatory approval.

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Despite the company's best efforts, it has been unable to attract a viable transaction to restructure its debts and/or seek any sales of the company or of its assets in the normal course. The decision to approve and enter into the wind-down plan was made after careful consideration of the current financial condition of the company and its subsidiaries, the company's inability to pay its liabilities as they become due and negotiations between the company and the lenders.

The company anticipates that B. Riley Farber Inc. will be appointed as the trustee under the bankruptcy proceedings.

SLANG is one of several cannabis operators to go bankrupt recently, including California cannabis company StateHouse Holdings, MedMen, Eaze, Herbl, Green Dragon, and more.

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