Jane Dietrich has been quoted in the article “Struggling Cannabis Companies Turn to Canadian Insolvency Law,” published by MJBiz.
Writes Solomon Israel: “An unusual number of cannabis companies have used a Canadian corporate insolvency law called the Companies’ Creditors Arrangement Act (CCAA) in 2022, a trend that demonstrates both the marijuana industry’s financial challenges and one possible solution to keep businesses from slipping completely underwater. Fourteen of the 35 CCAA filings in Canada – or 40% – between Jan. 1 and Dec. 22 have involved companies operating in the cannabis space in one way or another.”
Jane attributes this trend, in part, to the newness of the regulated industry: “There’s a lot of rationalization happening as people figure out which of the companies are going to succeed and which are struggling.”
She also believes that government support for businesses during the COVID-19 pandemic may have hidden “a lot of the troubled companies that were out there,” and says “that’s one of the reasons I think that [this trend] will continue.”