With capital constraints a growing factor in the marijuana industry, U.S. cannabis companies facing financial pressure are increasingly eyeing Canadian bankruptcy protection as a possible solution to their problems.
“It’s a growing trend,” said Zachary Kobrin, special counsel of government affairs at Fort Lauderdale, Florida-based Akerman. “We started seeing the tea leaves a few months ago and are looking into it.”
Troubled U.S. cannabis companies have tried the bankruptcy route at home, but given the federal illegality of marijuana, that has not proved to be a successful path.
Some U.S. firms now are looking north, where Canadian cannabis companies are allowed to seek such legal shelter from creditors.
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