SRx Canada Files CCAA, Monitor Appointed and Sale Process Launched

Rhea-AI Filing Summary

SRx Health Solutions, Inc. disclosed that its wholly owned Canadian subsidiary, SRx Health Solutions (Canada), Inc., obtained an Initial Order under the Companies' Creditors Arrangement Act from the Ontario Superior Court of Justice. The Court granted a stay of proceedings, appointed Grant Thornton Limited as Monitor, approved debtor-in-possession financing and authorized a sale process to identify potential transactions.

The Canadian unit secured DIP financing of up to $1,750,000 (which the filing states includes insider participation) to finance working capital and support restructuring while the sale process proceeds. The Company says it intends to continue critical Canadian operations during the proceedings, and that neither the parent company nor its U.S. subsidiary, Halo, Purely For Pets, Inc., have filed for bankruptcy in the U.S. or Canada.

Positive

• SRx Canada obtained a court Initial Order providing a structured legal framework for restructuring
• Grant Thornton Limited was appointed as Monitor, offering independent oversight of the proceedings
• Debtor-in-possession financing of up to $1,750,000 was secured to fund working capital and operations
• A formal sale process was authorized to identify potential transactions and preserve optionality
• The parent company and U.S. subsidiary have not filed for bankruptcy, limiting the restructuring to the Canadian unit

Negative

• SRx Canada entered CCAA proceedings, which indicates significant financial distress for the Canadian operations
• DIP financing includes insider participation, which may raise creditor and governance concerns
• The Sale Process may involve selling all or substantially all of SRx Canada's business or assets, risking loss of the Canadian business
• Proceedings introduce uncertainty for stakeholders and could materially affect recoveries for creditors and equity holders

Insights

Financial Analyst

TL;DR: SRx Canada's CCAA filing signals material distress; DIP financing provides short-term liquidity but heightens uncertainty for recovery of value.

The filing confirms a court-approved restructuring process under CCAA with a Monitor and up to $1,750,000 of DIP financing to fund operations and a sale process. Court-ordered stays typically protect the debtor from creditor actions while a sale is pursued, which preserves operational continuity but often reflects significant balance-sheet pressure. Insider participation in the DIP may accelerate funding ability but could raise creditor and governance concerns. The parent and U.S. subsidiary remain outside bankruptcy, isolating the restructuring to the Canadian entity for now. This is a materially adverse development for the Canadian business and a negative indicator for consolidated recovery prospects absent a successful sale.

Restructuring/M&A Specialist

TL;DR: Court-appointed Monitor, DIP financing and a structured sale process create an orderly path to maximize value, but outcomes remain uncertain.

The initial CCAA Order establishes the legal framework for an organized sale or restructuring, with Grant Thornton as Monitor to oversee creditor interests and the Sale Process to solicit bids. The $1.75M DIP facility should cover near-term working capital and enable marketing of the assets; insider participation can speed access to liquidity and support continuity. While this framework can preserve and potentially enhance recoveries compared with chaotic liquidation, final recoveries will depend on buyer interest, asset condition, and the outcome of the Sale Process. Impact is significant but outcome-dependent.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 12, 2025

SRx Health Solutions, Inc.

(Exact name of Registrant as Specified in its Charter)

Delaware		001-40477		83-4284557
(State or other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

12400 Race Track Road

Tampa, Florida 33626

(Address of Principal Executive Offices) (Zip Code)

(Registrant’s Telephone Number, Including Area Code): (212) 896-1254

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 par value share		SRXH		NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events.

CCAA Proceedings and Debtor-in-Possession Financing

On August 12, 2025, SRx Health Solutions, Inc., a Delaware corporation (the “Company”) announced that SRx Health Solutions (Canada), Inc., its wholly owned subsidiary (“SRx Canada”) sought, and later announced that SRx Canada had 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”), and 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 $1,750,000 which is expected to be used to finance SRx Canada’s working capital needs, including for continued operations and to implement the restructuring contemplated by the CCAA Proceedings. The CCAA Proceedings and DIP Financing will provide SRx Canada with the time and stability required to complete the Sale Process and identify transaction(s) which may include the sale of all or substantially all of the business or assets of SRx Canada. The Company intends to carry on the critical business of SRx Canada throughout the pendency of the CCAA Proceedings.

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.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
99.1		Press Release, dated August 12, 2025.
99.2		Press Release, dated August 12, 2025.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SRx Health Solutions, Inc.
	By:	/s/ Carolina Martinez
	Name:	Carolina Martinez
	Title:	Chief Financial Officer

August 12, 2025

FAQ

What action did SRx Health (SRXH) take regarding its Canadian subsidiary?

SRx Health's wholly owned subsidiary, SRx Health Solutions (Canada), Inc., sought and obtained an Initial Order under the Companies' Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice.

How much DIP financing was approved for SRx Canada?

The filing states SRx Canada secured debtor-in-possession financing of up to $1,750,000 to finance working capital and support restructuring.

Does the DIP financing include insider participation?

Yes. The filing expressly states the DIP Financing includes insider participation.

What relief did the Court grant in the Initial Order?

The Court granted a stay of proceedings, appointed Grant Thornton Limited as Monitor, approved DIP financing, and authorized a sale process.

Will SRx Health's U.S. entities also be in bankruptcy?

According to the filing, neither the parent company nor its U.S. subsidiary, Halo, Purely For Pets, Inc., has made any filing under any bankruptcy code in the United States or in Canada.

What is the purpose of the sale process in the CCAA proceedings?

The Sale Process is intended to identify transaction(s) that may include the sale of all or substantially all of SRx Canada's business or assets while the company continues critical operations.