SRx Health Solutions Obtains Initial Order under CCAA for its Canadian Subsidiary
Rhea-AI Summary
SRx Health Solutions (NYSE American: SRXH) announced that its Canadian subsidiary, SRx Canada, has obtained an Initial Order under the Companies' Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice. The court granted several key provisions including:
The company secured debtor-in-possession (DIP) financing of up to $1.75 million to support working capital needs and continued operations. A court-appointed monitor, Grant Thornton Limited, will oversee the proceedings and manage a sale process for SRx Canada's assets. The parent company and its U.S. subsidiary are not included in any bankruptcy proceedings.
Positive
- DIP financing of $1.75 million secured to maintain operations
- Court-approved restructuring process provides stability and time for strategic alternatives
- U.S. parent company and subsidiary remain unaffected by the proceedings
Negative
- Canadian subsidiary entering bankruptcy protection under CCAA
- Potential sale of all or substantial assets of Canadian operations
- DIP financing includes insider participation, indicating potential conflicts of interest
News Market Reaction
On the day this news was published, SRXH declined 12.47%, reflecting a significant negative market reaction. Argus tracked a trough of -20.0% from its starting point during tracking. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $630K from the company's valuation, bringing the market cap to $4M at that time. Trading volume was exceptionally heavy at 5.1x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
TAMPA, Fla., Aug. 12, 2025 (GLOBE NEWSWIRE) -- SRx Health Solutions, Inc. (NYSE American: SRXH) (the “Company”), a leading global health and wellness company, today announced that its subsidiary, SRx Health Solutions (Canada), Inc.(“SRx Canada”) and certain of its subsidiaries obtained an Initial Order (the “Initial Order”) in Canada under the federal Companies’ Creditors Arrangement Act (the “CCAA” and SRx Canada’s proceedings thereunder, the “CCAA Proceedings”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”).
In connection with the Initial Order, the Court granted, among other relief:
- a stay of proceedings in favor of SRx Canada
- the appointment of Grant Thornton Limited as the monitor of SRx Canada (in such capacity, the “Monitor”)
- debtor-in-possession financing (“DIP Financing”)
- a sale process (“Sale Process”)
SRx Canada has secured DIP Financing (which includes insider participation). The Dip Financing consists of a credit facility of up to a maximum of
Pursuant to the Initial Order, the Monitor is maintaining a case website at the following URL: https://www.doanegrantthornton.ca/Srx. All materials filed and orders granted in the CCAA Proceedings will be uploaded to the case website.
Neither the Company nor the Company’s United States subsidiary, Halo, Purely For Pets, Inc., a Delaware corporation, has made any filing under any bankruptcy code or statutory reorganization scheme either in the United States or in Canada.
About SRx Health Solutions, Inc.
SRx Health Solutions Inc. is an integrated Canadian healthcare services provider that operates within the specialty healthcare industry. The SRx network extends across all ten Canadian provinces, making it one of the most accessible providers of comprehensive, integrated, and customized specialty healthcare services in the country. SRx combines years of industry knowledge, technology, and patient-centric focus to create strategies and solutions that consistently exceed client expectations and drive critical patient care initiatives aimed to improve the wellness of Canadians. For more information on SRx Health Solutions Inc., please visit www.srxhealth.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
SRx Health Solutions, Inc.
Kent Cunningham, Chief Executive Officer
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
FAQ
What is happening to SRx Health Solutions' Canadian subsidiary?
How does the CCAA filing affect SRXH's U.S. operations?
What is the DIP financing amount for SRx Canada's CCAA proceedings?
Who is overseeing SRx Canada's restructuring process?
What are the next steps for SRx Canada under CCAA protection?
