Phoena Holdings Inc. and several Ontario-based cannabis companies secured CCAA protection on April 4, 2023. These companies, excluding Phoena Holdings and Elmcliffe Investments [No. 2] Inc., were involved in prior CCAA proceedings. Phoena Holdings, previously known as CannTrust Equity Inc., had emerged from CCAA protection on March 15, 2022, following the CannTrust group's CCAA plan implementation on January 5, 2022.

Despite regaining their cannabis licenses and undertaking various cost-cutting measures, the applicants failed to boost revenue enough to offset substantial operating costs. They incurred significant losses due to unfavorable market conditions, including an oversupply of cannabis and persistent price compression.

The companies plan to wind down operations, pursue a potential sale, and appoint a liquidator to aid in selling inventory, equipment, and fixtures. Ernst & Young (EY) was appointed as Monitor, represented by Thornton Grout Finnigan LLP (TGF). Miller Thomson LLP is advising the companies. Cortland Lending Corporation, the primary secured creditor, is represented by Cassels Brock & Blackwell LLP and supported by financial advisor KSV. Fogler Rubinoff LLP is acting as counsel for secured creditor Balfour Energy Corp.