Unrivaled Brands, a once-prominent subsidiary of California marijuana company Blüm Holdings, has reached a deal to settle litigation with creditors as part of bankruptcy proceedings.
While court records show that Unrivaled’s bankruptcy process has yet to be finalized, the settlement agreement announced in a Monday news release will resolve multiple lawsuits between Unrivaled and People’s California, a California-based distillate cartridge manufacturer that claimed Unrivaled owed it nearly $15 million.
Exact terms of the settlement are not publicly available.
Jason Assad, a company spokesperson, did not immediately respond to an MJBizDaily request for comment.
In a statement, Sabas Carrillo, the founder of Downey-based Adnant Consulting and Blüm’s current CEO under a restructuring arrangement, said the company is “very pleased with the outcome and terms of the settlement and look expectantly to the future of Blüm.”
Unrivaled $37.25 million underwater, filing shows
Unrivaled made a splash in the pre-legalization medical marijuana market in California with brands such as Korova, known for marketing super-potent edibles that later legislation banned from the adult-use market.
However, the company appears to have suffered many of the same struggles affecting other operators in the legal era.
People’s California filed suit against Unrivaled in July 2022, alleging breach of contract.
As of Sept. 30, 2024, Unrivaled reported $27.3 million in assets and $34.49 million in liabilities, according to earnings statements.
But according to a statement filed in court in January, the company was $37.25 million underwater, with $5.8 million in assets to $43 million in liabilities and only $45,000 in cash on hand.
Outstanding debts include nearly $470,000 in back taxes owed to the state of California and $304,000 plus interested owed to Orange County, according to a February declaration.
Investors left holding bag after back taxes paid
Some of these debts will be paid after assets – including real estate in Southern California – are liquidated, court records show.
According to documents filed in bankruptcy court, other major creditors with unsecured claims against Unrivaled include:
- Concord-based Fusion LLF, $4.55 million
- Adnant, $4.38 million
- San Francisco-based investor Arthur Chan, $3.1 million
- Foothill Ranch-headquartered Greenlane Holdings, $1.8 million
- New York-based Dominion Capital, $1.7 million
More filings in the case are due in April, according to a Feb. 21 court filing.
Chris Roberts can be reached at chris.roberts@mjbizdaily.com.
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