California-based Gold Flora Corporation has filed for voluntary receivership, seeking court protection to manage its financial challenges. The company cites legacy lawsuits from its acquisition of TPCO Holding Corp, rising operational costs, and high-yield debt as primary reasons for the filing.
Despite reporting over $100 million in annual revenue and operating 16 dispensaries across California, Gold Flora’s leadership determined that receivership was the best course of action to preserve the company’s value and facilitate an orderly sale.
In a press release, Gold Flora founder and CEO Laurie Holcomb emphasized that while the business remains strong, the receivership process is necessary to prevent the company from being dismantled by creditors. “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,” Holcomb stated.
As a result of the filing, Gold Flora’s common stock and warrants are expected to be suspended from trading on the Cboe Canada exchange, with an eventual delisting from the exchange anticipated.
The company’s future now hinges on the receivership proceedings and the potential sale of its assets. Stay updated on this and other industry developments by subscribing to daily cannabis business news updates.
