On July 15, 2024, Delta 9 Cannabis Inc. (TSX: DN), along with cannabis retailers from Alberta, Saskatchewan, and Manitoba, and a Winnipeg-based producer and distributor, obtained CCAA protection on July 15. The companies faced financial challenges due to intense competition, an over-supply of cannabis products, illicit cannabis supply, and regulatory costs. These factors led to significant losses and the sale of inventory at a loss. Prior to the CCAA filing, the companies were on the brink of enforcement on senior debt obligations. SNDL Inc., the subordinate secured debenture holder, recently acquired the senior secured debt from ConnectFirst Credit Union, issuing demand notices on May 21 (subordinate) and July 12 (senior).

In conjunction with the CCAA filing, Delta 9 entered a binding term sheet with 2759054 Ontario Inc., operating as The FIKA Company, to act as the plan sponsor. The FIKA Company proposed to acquire the cannabis retail store business and logistics and distribution business while facilitating a Sales and Investment Solicitation Process (SISP) for the licensed cannabis production business assets. Alvarez & Marsal (A&M) was appointed as the monitor. Legal advisors included MLT Aikins for Delta 9, BD&P for the monitor, Miller Thomson for FIKA, and McCarthy Tétrault for SNDL.