Another one of California’s largest cannabis operators plans to liquidate assets after mounting financial losses and operational challenges.
Gold Flora Corp., one of the state’s largest cannabis retail chains, is entering receivership after defaulting on a $11.5 million loan.
The company said in a press release its seeking court protection as a result of lawsuits related to its 2023 acquisition of TPCO Holdings, rising business expenses and high-yield debt.
“There’s a special level of M&A consolidation problems when you have a merger of equals. Most M&A deals fail in the first place, but especially these mergers of equals,” said Frank Colombo, managing director at Viridian, a New York-based, cannabis-focused investment banking and data analytics firm, in an interview with MJBiz. “It’s extremely difficult to merge two really big companies like these.”
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