California-based cannabis company Gold Flora Corporation last week filed for a voluntary receivership, seeking court protection it says is necessary as “a result of obligations from legacy lawsuits that arose out of Gold Flora’s acquisition of TPCO Holding Corp and mounting costs of operations and high-yield debt.”
In a statement, Gold Flora founder and CEO Laurie Holcomb noted that the company has over $100 million in annual revenues. According to the company’s website, it operates 16 dispensaries throughout the state.
“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.” — Holcomb in a press release
Holcomb said the receivership will help the company “achieve an orderly sale of the business.”
As a result of the filing, Gold Flora expects its common stock and warrants will be suspended from trading on the Cboe Canada exchange and that the company will ultimately be delisted from Cboe Canada.
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