Emblem Cannabis Corporation, a wholly-owned subsidiary of Red White & Bloom Brands (CSE: RWB), has completed its acquisition of insolvent Canadian cannabis company Ayurcann, picking up a Health Canada-licensed manufacturing facility, three consumer brands, and distribution across eight Canadian provinces for total consideration of CA$5.5m.
The deal closed on 8 June 2026, bringing to an end a CCAA process – Canada’s court-supervised insolvency framework – that began on 30 January 2026, when Ayurcann filed for creditor protection under acute pressure from the Canada Revenue Agency. The company’s court filings record a liquidity crisis and approximately CA$10.6m owed to the CRA in outstanding taxes, interest and penalties as of 26 January 2026.
Founded in 2018, Ayurcann had grown from a B2B cannabis services provider into a vertically integrated operator with its own brands and a licensed processing and manufacturing facility in Pickering, Ontario, but could not absorb the cost of federally licensed manufacturing against continued wholesale price compression in the adult-use market.
The Ontario Superior Court approved a formal sale process on 13 February 2026. Emblem was selected as the winning bidder on 13 April, with closing completed ahead of the 30 June court deadline.
The acquired portfolio includes the Fuego, Xplor and Happy & Stoned labels, more than 90 SKUs distributed across approximately 2,500 retail outlets in eight provinces and territories, with vapes and pre-rolls at the core. Beyond the brands, the transaction transferred Ayurcann’s Pickering facility, production equipment, intellectual property and existing commercial relationships. Emblem acquired 100% of newly issued Ayurcann shares, holding the operating business and its regulatory licences indirectly.
Total consideration of CA$5,501,311 comprised a release of CA$2,101,075 outstanding under the DIP facility and a cash payment of CA$3,400,236, paid to court-appointed monitor Alvarez & Marsal Canada on closing. Prior to closing, Emblem had assumed bridge financing previously provided by Auxly Cannabis Group, paying CA$1.6m to acquire Auxly’s outstanding loan and related security interests. Auxly, which had provided that financing since February, exited its creditor position on 2 June.
‘We are adding some of Canada’s most recognised brands in the vape and pre-roll categories, a talented team, and a highly complementary operating platform that strengthens our position in one of the world’s most competitive cannabis markets,’ said Colby De Zen, President of Red White & Bloom Brands. ‘We believe this transaction delivers immediate value through increased revenue and EBITDA, while also creating a powerful foundation for future growth.’
RWB management intends to take the Fuego, Xplor and Happy & Stoned brands beyond Canada, flagging plans to introduce the portfolio into additional legal markets using the company’s existing North American platform and distribution relationships.
For RWB, the deal deepens a Canadian manufacturing platform it only recently acquired. The company entered the Canadian market in January 2024 through its acquisition of Aleafia Health for approximately CA$31.7m, a deal that brought Emblem Cannabis into the group along with a 65,000 sq ft EU-GMP facility in Paris, Ontario and distribution into five Canadian provinces, plus medical and international channels. Emblem already holds a Canadian cannabis processing licence, but the Pickering facility adds a more substantial production platform and Ayurcann’s distribution relationships across three additional provinces.
This story was updated on June 09 to incorporate new information published after the deal was completed.
