California cannabis company Gold Flora plans to sell assets

Gold Flora, a California cannabis company, is seeking to sell its assets in response to rising operational costs and legal issues. The company announced it would enter receivership in Los Angeles Superior Court, which allows for the sale of its dispensaries and cultivation campus. Founded in 2017, Gold Flora operates 16 dispensaries across California and has significant annual revenue. However, it reported a net loss of nearly $19 million in the third quarter of 2024, with liabilities exceeding its assets by more than $63 million. The cannabis industry has been facing challenges, particularly in California. The federal illegality of cannabis complicates access to traditional banking and raises tax burdens for companies in the sector. Other companies, like MedMen, have also struggled with closures and lawsuits. Gold Flora’s decision to enter receivership comes after its merger with TPCO in 2023, which faced similar financial troubles. CEO Laurie Holcomb stated that this choice, though difficult, is necessary to protect stakeholders and maintain the company's value.