The Court of King's Bench of Alberta has approved the transactions that would allow Simply Solventless Concentrates' subsidiaries to leave protection under the Companies' Creditors Arrangement Act, Canada's court-supervised insolvency process for larger companies. On closing, the Calgary cannabis producer says total debt falls from roughly $28.1 million to about $7.4 million, and monthly debt servicing from about $462,000 to $171,000.
The reduction comes from three sources: up to $15.0 million of unsecured liabilities discharged through the court process, up to $5.6 million of convertible debentures and promissory notes converted into equity, and roughly $0.6 million of debtor-in-possession loan discharged. Operating costs have separately been cut by about $0.3 million per month.
The cost of that relief is dilution. Simply Solventless currently has 115.5 million shares outstanding. Under the maximum conversion scenario the company sets out, that rises to 240.7 million shares, or 388.9 million fully diluted. As of July 28, 2026, holders had committed to convert $1.5 million of debenture principal rather than the $3.0 million cap, which would produce 210.7 million shares and 328.9 million fully diluted.
Holders of the $5.975 million of secured convertible debentures issued in February 2025, which carry 11 percent interest, may convert principal at $0.05 per unit. Their conversion price drops from $1.00 to $0.15 per share and attached warrants are repriced from $1.20 to $0.25. Accrued interest for the March and June 2026 quarters will be settled in units; September quarter interest is waived. Holders also receive an amendment fee of 2.75 percent of outstanding principal, payable in units. Roughly $1.6 million of about $2.5 million in promissory notes is converting into some 31.35 million units.
Alongside this, the company is raising up to $1.0 million through a non-brokered private placement of 20 million units at $0.05, each with a two-year warrant exercisable at $0.10. Closing is expected around August 15, 2026, with insiders subscribing for about $0.2 million. Proceeds are earmarked for restructuring fees, pre-CCAA excise taxes at subsidiary Humble Grow Co., deposits to the Canada Revenue Agency and working capital — not growth.
Operations shrink from four facilities to two: Humble cultivation and ANC manufacturing. Massive Hash Factory has been shut down and CannMart is being sold. The company puts its consolidated gross revenue run rate at $2.8 million to $3.1 million per month against a break-even level of about $2.6 million.
At Humble, new LED lighting has been installed in 239 of 269 rooms. The company reports wet and untrimmed dry yield increases of approximately 76 and 77 percent for two retained cultivars, measured against their trailing six-month average. Those figures are internal, unaudited and drawn from a limited number of harvests. The retrofit costs about $1.5 million, against roughly $1.3 million in approved Manitoba efficiency rebates expected by September 30, 2026.
Emergence from CCAA is expected by the earlier of closing or September 30, 2026, subject to TSX Venture Exchange approval. Chief Operating Officer Murray Brown has stepped down under a retirement transition running to June 30, 2027 and is now Vice President, Corporate Services.
Source: Newsfile
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