Cannabis events agency Lift & Co. has filed for bankruptcy
Lift & Co. is a great resource for Canadians who want to understand and make better-informed cannabis decisions in regard to their use. To be the server of trusted authority regarding cannabis is the vision of this Canadian company. 2014 saw the launching of Lift & Co. by the founder Tyler Sookochoff who designed the site for people to share their cannabis experiences, read industry news and discover new strains through an on-line avenue.
Sookochoff and Lift & Co. offered Canada's first website for product reviews, guiding consumers towards finding the perfect product for their needs. Unfortunately, Lift & Co. has now filed for bankruptcy.
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Lift & Co. soon realized that they needed to heighten the online community's involvement and bring the cannabis companies face-to-face with the consumers that were reviewing, and there is no better to do that than with cannabis events. Lift & Co. introduced the online community to the cannabis expo space when Lift & Co., Expos, and Lift & Co. Cannabis Business Conferences were born.
The company also presented the Canadian Cannabis Awards each year. The Awards were the first nation-wide-event to showcase and celebrate cannabis excellence. Sookochoff proclaimed that prohibition was over, and Lift & Co. had just begun. However, times have changed, things have worked out differently than expected, and bankruptcy is now in the Canadian cannabis information site plans.
Lift & Co. has failed to reach an agreement with its secured creditors, and the company's inability to sell its consumer marketing and trade marketing divisions has added to the necessity for filing bankruptcy. The company owes as astounding $3.5 million in secured debts. The pockets of Lift & Co are no longer green, and the company does not have the required working capital needed to repay the monies owed on the and secured convertible debentures or to continue with daily business.
The directors and officers have resigned from Lift & Co. effective immediately. For its creditors' benefit, the company made a voluntary assignment under section 49 of the Bankruptcy and Insolvency Act in Canada. The coronavirus eventually stopped the awaited cannabis event from proceeding as arranged, which resulted in their cash flow, essentially drying up. Surveys indicate that 76% of all cannabis events have lost around 75% of business revenue since March 2020. 71% of respondents from the LiveDesign survey show that revenues have fallen significantly.
Lift & Co. laid-off hundreds of employees in March, and the company at that time indicated that it would still proceed with its Lift & Co. Expo to be held in November. However, quietly the preparations for the Toronto cannabis expo were postponed. The company MCI USA who reached a deal to operate Lift & Co. events, says the cannabis expo will continue as a virtual event despite the new circumstances. The coronavirus has changed the way that businesses are moving forward. The cannabis business space is no different, and companies like Lift & Co. feel the global pandemic's shock results.