Cannabis Extension Agreements
- Some cannabis businesses may not have the ability to generate sufficient cash to settle with creditors, but the business may be able to become rehabilitated and repay creditors over a period of time from funds generated by continuing operations.
- The key to success in this type of case is an extension of time granted to the company within which to repay creditors.
- The terms and conditions of extension programs are negotiated between the business and a creditors’ committee, with the assistance of CannaForm.
- Once an agreement is reached, CannaForm provides a written report detailing the debtor’s proposal to all creditors for their review and consent.
- During the extension period, regular payments are received by CannaForm and deposited in special trust funds for periodic distribution to all unsecured creditors on a pro-rata basis. CannaForm works with the creditors’ committee in monitoring the debtor’s operations and keeps creditors informed, by way of written reports, of the status of the debtor’s operations and its compliance with the terms and conditions of the extension agreement.
Cannabis financial strategy
Covering all areas of the medicinal and adult-use cannabis industry
CannaForm is here to assist with indoor, outdoor, and everything in between.
Edibles, extractions, and all of your manufacturing needs.
Whether it’s the first location in a new jurisdiction or a Type 9 delivery business in Oakland, we are here to help.
Standalone distributor, microbusiness, or vertically-integrated international, CannaForm is at your side.