Cannabis Retailer Tokyo Smoke Moves Forward After Major Restructuring

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Cannabis retailer Tokyo Smoke has finished its restructuring process and is no longer under financial protection, following a court's approval.

What Happened

The Canadian company first announced that it started restructuring its business in August, obtaining an initial order under the Companies Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice in Canada.

In Sept. the company entered a share subscription agreement with TS Investments Corp., its parent company. Under the deal, TS Investments agreed to subscribe to all of the issued and outstanding shares of Tokyo Smoke. That deal was valued at roughly $56.7 million (CA$77 million).

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Why It Matters

The company reported recently that most of its stores are unaffected, while its online business and loyalty program will continue as usual.

"There will be no disruption or change to the Company’s online business, or The High Roller Club loyalty program," Tokyo Smoke said in a press release.

What's Next

Tokyo Smoke said it is now a stronger business, ready to provide high-quality cannabis products and services in Canada, both online and in stores, while keeping jobs for its employees.

"Tokyo Smoke will continue its commitment to bringing Canadians the highest quality regulated products, online and in-person, through its expansive retail network, while educating and empowering customers to make well-informed decisions about safe, high-quality cannabis offerings that reflect Canadians’ interests, neighborhood by neighborhood," the company said.

Tokyo Smoke was previously owned by Canopy Growth Corp WEED CGC. The Canadian cannabis giant divested stores operating under the Tokyo Smoke and Tweed retail banners in early 2023.

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