Canadian Cannabis Company on Brink of Bankruptcy as Debt Comes Due

Radient's current liabilities exceed its assets by $39.2 million.

Radient Technologies Inc. (TSXV: RTI) is looking for ways to stay open as unpaid taxes and a looming debt bill worth more than $10 million comes due.

The pharmaceutical cannabis extract producer reported its financial results for the first quarter ending June 30.

The company reported revenue of $569,414, a 31% drop from the same period last year. Net losses totaled $1.5 million, according to regulatory filings, a slight improvement versus a loss of $1.9 million the same time last year.

Radient said that is pursuing avenues to raise sufficient working capital to allow the company to operate as a going concern, “but cannot assure it will be able to do so.”

Gross profit for the quarter was roughly $6,000, more than 970% lower than the $66,055 reported during the same time last year.

Moskowitz Capital Mortgage Fund II Inc. issued a demand notice to the company on Aug. 26 for $10.5 million, plus accrued costs and additional interest. Radient said it does not have the money and is trying to figure out a way to keep its land and property assets, which it used as collateral.

According to financial filings, the company has $34,557 worth of cash that it received from a financing stipend (promissory note). Radient’s current liabilities exceed its assets by $39.2 million.

The company also received a demand letter in May from the Canada Revenue Agency to pay taxes of an unknown amount. By July, Radient was allowed to renew their cannabis license for an additional six months, until early January. Whether the company will be able to pay off the tax debt by then remains up in the air.

“These balances and the changes year over year indicate that there are material uncertainties that may cast significant doubt about the company’s ability to continue as a going concern,” the company wrote in regulatory filings.

“Management has been able to finance operations through debt and equity financings and will continue, as appropriate, to seek financing from these and other sources; however, there are no assurances that any such financings can be obtained on favourable terms, if at all. There can be no assurance that the steps management is taking will be successful.”

Radient said that it continues to implement the restructuring plan it laid out over the summer by focusing on the company’s hydrocarbon concentrate and cannabis pre-roll product lines.

The company said it shipped more than $1.2 million of hydrocarbon products and pre-roll products to customers and has product purchase orders worth around $2.5 million.

However, management also said that it will need to find more capital to facilitate fulfilling product purchase orders and growth. How much longer it has until it’s forced to fold its hands is unclear.

“The company has a history of significant operating losses and expects to incur further losses in the development of its business,” it said in regulatory filings. “As such, the company’s status as a going concern is contingent on its ability to increase cash flows or to raise further funds through the issuance of equity or debt.”

If unsuccessful, the company said, it will not keep going.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at


  • Ellyn D'Uva

    October 25, 2022 at 8:24 am

    Makes me smile and laugh to see this company go bankrupt.


  • michael g mclaughlin

    October 25, 2022 at 7:29 pm

    Let’s see. Take on a big debt, keep borrowing money and keep trying to GO BIG to save your company. Get rich quick fails again.


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