Gold Flora, a cannabis company with subsidiaries operating across California, announced that it filed for a voluntary receivership pursuant under the laws of the State of California.
The company said it's seeking court protection as a result of obligations from legacy lawsuits that arose out of its acquisition of The Parent Company and mounting costs of operations and high yield debt. It also said it has defaulted on senior secured promissory notes issued between August 2024 and December 2024, totaling approximately $11.5 million.
Gold Flora said it intends to continue operating as a going concern and expects to be sold along with its 16 dispensaries and a 100,000-square-foot cultivation campus.
"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 cannabis market in California 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 a voluntary receivership that is necessary to achieve an orderly sale of the business. We believe Gold Flora's business remains valuable and sound, but receivership is our only option to sell the business as a going concern as opposed to seeing it broken up by different creditors, which we believe is not in the best interest of any stakeholder. Therefore, after careful consideration of these factors, duties owed to all stakeholders and in the absence of other available alternatives, the board of directors of the Company determined that it was in the best interests of the Company and its stakeholders to proceed with the commencement of the Receivership Proceedings."
