Cannabis retailer Tokyo Smoke says it has begun a stalking horse sales process.
The sales process allowed by parent company TS Investments Corp. has priced the beleaguered business at $77 million.
A stalking horse bid is an offer to buy a bankrupt firm or its assets that is arranged ahead of an auction and typically sets a floor price for the assets.
Tokyo Smoke began seeking creditor protection last month at the same time it announced it would close 29 stores.
Some 167 locations across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador would remain open amid the restructuring.
The creditor protection filing was designed to help the company better navigate the current cannabis market and regulatory conditions, which it says have changed “significantly.”
OEG Retail Cannabis, a firm operated by the owner of the Edmonton Oilers hockey team, bought the Tokyo Smoke brand from pot company Canopy Growth Corp. in 2022.
Since that deal was signed, the cannabis market has struggled as the number of retailers has soared and the price of pot has dropped.