Gold Flora Corporation (CBOE: GRAM), a prominent California cannabis company with annual revenues exceeding $100 million, has filed for voluntary receivership amid mounting debt and legal obligations stemming from a previous acquisition.
The vertically-integrated cannabis operator cited obligations from legacy lawsuits related to its acquisition of TPCO Holding Corp and escalating operational costs as primary factors in its decision. The company also disclosed it has received a notice of default from J.J. Astor & Co. regarding senior secured promissory notes, with outstanding principal and interest reaching approximately $11.5 million.
“This was a difficult but correct decision to make for all stakeholders,” said CEO and founder Laurie Holcomb. “While Gold Flora remains a leading operator and retailer in the California cannabis market with over $100 million in annual revenues, the liabilities on our balance sheet, many of which are due to lawsuits we inherited with the TPCO business combination, forced us to file for voluntary receivership.”
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Gold Flora anticipates being placed into receivership in the Los Angeles Superior Court, Santa Monica Division, with Richard Ormond of Stone Capital Blossom, LLC expected to be appointed as receiver. The company intends to continue operating as a going concern during proceedings and expects to be sold as such, maintaining its network of 16 retail dispensaries and 100,000 square foot cultivation campus.
As a result of the filing, Gold Flora’s common stock and warrants will be suspended from trading on the Cboe Canada Exchange, with eventual delisting anticipated.
Gold Flora operates multiple premium indoor cannabis cultivation facilities across California, with approximately 107,000 square feet of cultivation space. Its retail operations include Airfield Supply Company, Caliva, Coastal, Calma, King’s Crew, Varda, Deli, and Higher Level dispensaries, while its distribution arm operates under the name Stately Distribution.
The company distributes several prominent cannabis brands, including its own premium lines of Gramlin, Gold Flora, Cruisers, Roll Bleezy, Aviation Cannabis, Jetfuel Cannabis, and Monogram.
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