California-based marijuana operator Gold Flora Corp. is facing receivership as it grapples with financial challenges.
Financial recovery firm Global Assets Liens & Foreclosure filed an ex parte application for receivership in Santa Barbara Superior Court against Gold Flora, which owes more than $236,725 in unpaid invoices.
The hearing is scheduled for Nov. 27, according to a Global Assets news release.
Global Assets is asking that Kevin Singer of Los Angeles-headquartered Receivership Specialists be appointed as receiver.
Singer has been appointed receiver in proceedings involving cannabis companies such as Herbl, High Times and, most recently, StateHouse Holdings.
Gold Flora, which is operating under a limited receivership in Delaware, has incurred losses exceeding $37 million, according to the release.
Global assets noted that a recent proxy statement revealed that Costa Mesa-based Gold Flora is taking measures such as a 1-for-50 reverse stock split and substantial share issuance, indicating severe liquidity issues.
During a Nov. 14 earnings call, Gold Flora Chief Financial Officer Marshall Minor said the company is reducing payroll by 10% to help cut costs.
Despite the company’s financial difficulties, CEO Laurie Holcomb said Gold Flora is planning to expand, with a focus on its newly branded line of Gramlin cannabis products.
Last year, Gold Flora merged with TPCO Holdings, which operates as The Parent Co., in an all-stock deal.
The combined companies are called New Parent and operate as Gold Flora Corp.
The deal gave Gold Flora access to a $5 million line of credit from The Parent Co. at a 10% annual interest rate secured by Gold Flora assets.
The merger was expected to streamline operations and generate annualized savings of $20 million to $25 million.
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