The future is uncertain for what was supposed to be Guelph's first recreational cannabis shop.
It comes after Fire & Flower Holdings Corp. got a court order for creditor protection under the Companies' Creditors Arrangement Act, announced Tuesday.
Fire & Flower has a location at 314 Stone Rd. W., across from Stone Road Mall. It's general manager declined a media interview Tuesday afternoon but the location is currently open.
The company has said it was actively pursuing additional financing to raise capital to fund its operations. It reached out to a financial advisor on May 26 to assist in reviewing options.
After review, Fire & Flower said this was the best option.
The stock stopped trading at 29 cents a share on the TSX. In 2019 the stock was work $13.90 a share.
There are 90 corporately-owned Fire & Flower locations.
The board of directors remain in place, and management will be responsible for the day-to-day, under the guidance of a court-appointed monitor.
Work is underway to develop a process to streamline operations and conduct a sales process under the supervision of the court.
It also signed a facility agreement with an affiliate of Alimentation Couche-Tard Inc. for a debtor-in-possession loan worth $9.8 million to help pay for the CCAA protection and "other short-term working capital requirements."
