Judge Tosses Co.'s Ch. 11 Filing Over Canadian Pot Plans – Law360

Law360 (October 19, 2020, 9:53 PM EDT) — A company raising money to operate a cannabis business in Canada said Monday it won’t appeal a federal judge’s ruling that it can’t pursue Chapter 11 bankruptcy due to marijuana’s illegality in the United States. 

The Nevada bankruptcy judge’s ruling is significant for the additional light it sheds on when cannabis companies can — and can’t — utilize U.S. bankruptcy protections.

In an Oct. 7 order, U.S. Bankruptcy Judge Bruce Beesley dismissed Pharmagreen Biotech Inc.’s bankruptcy case, granting a motion from a group of creditors who argued that the company can’t qualify as a debtor under the Bankruptcy Code.

Pharmagreen, a public…

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