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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index edged up 2.79 points to 124.29 Thursday, while the Canadian Securities Exchange Composite Index gained 7.84 points to 267.99. For the third straight day, a cannabis company is in danger of declaring bankruptcy. CBD-for-pets producer True Leaf Brands Inc. (MJ) dropped 1.5 cents to two cents on 2.41 million shares after beginning restructuring proceedings. The company is seeking creditor protection under the Bankruptcy and Insolvency Act (BIA).
The two companies that filed for creditor protection on Tuesday and Wednesday -- Canntrust Holdings Inc. (TRST: $0.91) and James E. Wagner Cultivation Corp. (JWCA: $0.025) -- did so under the Companies' Creditors Arrangement Act (CCAA). According to McMillan LLP, the BIA tends to be used for less complicated restructurings, where a proposal can be filed within six months. The CCAA, meanwhile, is often used for more complicated restructurings that take longer to sort out.
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