Introduction: Chase Business Development Corp. ("Chase") sued Fiore Cannabis Ltd. ("Fiore"), Full Spectrum Medicinal Inc. ("FSM"), 1313721 B.C. Ltd. ("131"), Springcreek Capital Corp. ("Springcreek"), Peter Lacey, and Carl Rosenau over a joint venture agreement to develop cannabis production facilities.

Legal Framework: The court considered Section 236 of the Business Corporations Act, allowing for security for costs if a corporate plaintiff is unlikely to pay defendants' costs if the defense succeeds.

Prima Facie Case: The court found Chase had no real property or evidence of ongoing business operations, demonstrating a prima facie case of inability to pay costs.

Exigible Assets: Chase claimed beneficial ownership of the Squilax Property through 1196788 BC Ltd. ("119"). However, a mortgage was registered against the property, and the court found Chase did not meet the burden of proving sufficient exigible assets.

Arguable Defense: Chase acknowledged that the defendants had an arguable defense, as the Springcreek mortgage secured a bona fide loan, and the defendants were unaware of the agreement terms.

Undue Hardship: Chase did not show evidence of undue hardship or inability to fund litigation if ordered to pay security for costs.

The Quantum: Springcreek sought $50,000, and Lacey and Rosenau sought $100,000 in security for costs. The court reduced the amounts, ordering Chase to post $30,000 for Springcreek and $30,000 for Lacey and Rosenau, totaling $60,000, within 30 days.

Conclusion: The court ordered Chase to provide $60,000 in security for costs, balancing the protection of the defendants with the potential for stifling Chase's claim.