Emblem Cannabis Corporation has assumed the debtor-in-possession financing for Ayurcann Inc. following an assignment from Auxly Cannabis Group Inc. [1]
This transition ensures that Ayurcann maintains essential funding while navigating its current insolvency process. Without this continued financial support, the company's ability to operate during legal restructuring would be at significant risk.
Emblem Cannabis Corporation is a wholly owned subsidiary of Red White & Bloom Brands Inc. [1]. The company completed the assignment and assumption of the debtor-in-possession (DIP) facility effective June 2, 2026 [2].
The DIP facility was previously provided by Auxly Cannabis Group Inc. [1]. By assuming this role, Emblem Cannabis Corporation has become the new DIP lender for Ayurcann as the latter continues its proceedings under the Companies' Creditors Arrangement Act (CCAA) [1].
Based in Toronto, Ontario, the arrangement was formally announced in a press release issued June 3, 2026 [3]. The transfer of the facility allows Ayurcann to maintain the liquidity necessary to sustain operations, while it works toward a restructuring plan under the CCAA framework [1].
This move marks a shift in the financial backing of Ayurcann's restructuring efforts. The assignment of the loan from Auxly to Emblem facilitates a change in the creditor landscape without interrupting the flow of capital to the distressed entity [1].
“Emblem Cannabis Corporation has become the new DIP lender for Ayurcann.”
The transfer of debtor-in-possession financing is a critical maneuver in CCAA insolvency cases, as it prevents a funding vacuum that could force a company into immediate liquidation. By shifting the lender role from Auxly Cannabis Group to Emblem Cannabis Corporation, the parties are reorganizing the debt structure while keeping Ayurcann operational, potentially altering the leverage and priorities of the creditors during the final restructuring phase.
