A Michigan circuit court has appointed a receiver for the assets of PharmaCo, a property of Canada-based cannabis multistate operator Red White & Bloom Brands.
PharmaCo, which was acquired in February 2022 by Red White & Bloom subsidiary RWB Michigan, has operated licensed medical and adult-use marijuana stores and conducted limited cultivation in Michigan.
Circuit Court Judge Michael Warren appointed Trust Street Advisors, through agent Gen Kohut, as receiver for PharmaCo’s assets, according to a Tuesday news release.
The receivership order was issued after continued and uncured defaults under a loan agreement between PharmaCo and its senior secured lender.
The receivership is expected to generate savings by reducing operating expenses, working capital demands and debt-service obligations associated with PharmaCo’s operations, which no longer align with RWB’s core business objectives, the release noted.
PharmaCo’s Michigan operations will continue without disruption during the receivership.
When RWB acquired PharmaCo, the Michigan operator’s assets included:
- Eight cannabis operating cannabis stores plus two more that were ready to open.
- Two indoor cultivation facilities.
- One outdoor cultivation site.
- Other owned properties that could be used as cultivation or retail sites.
RWB, which operates in such U.S. markets as Arizona, California, Florida, Illinois, Massachusetts and Michigan, said in the release it “remains committed to driving innovation and creating value within its distribution networks across the United States.”
The company said it will continue to optimize its recently acquired Canadian operation, Ontario-based Aleafia Health.
That deal closed on Jan. 15, 2024, with a final purchase price of $31.7 million.
Shares of Red White & Bloom trade on the Canadian Securities Exchange as RWB.
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