[PRESS RELEASE] – COSTA MESA, Calif., March 27, 2025 – Gold Flora Corp., a cannabis company with subsidiaries operating across California, filed for a voluntary receivership under the laws of the state of California on March 27. The company seeks court protection as a result of obligations from legacy lawsuits that arose out of Gold Flora acquires TPCO Holding Corp. The Parent Company (also known as The Parent Company), and rising costs of operation and high-yielding debt.
Additionally, the company has received a notice of default from J.J. Astor & Co. with respect to senior secured promissory notes issued to Astor between August and December 2024, which increased the aggregate amount of outstanding principal and interest under the notes to approximately $11.5 million.
Gold Flora is expecting to be placed under receivership at the Los Angeles Superior Court Santa Monica Division. Richard Ormond from Stone Capital Blossom LLC will likely be named as receiver. Richard Ormond is one of California’s best-experienced cannabis receivers.
Gold Flora, while preparing an orderly sales of its California operation, intends to operate and expects it to be sold that way as long as they retain a business which consists of 16 dispensaries along with a 100,000-square foot cultivation campus.
“This was a difficult but correct decision to make for all stakeholders,” CEO and founder Laurie Holcomb said. “While Gold Flora remains a leading operator and retailer in the cannabis market in California with over $100 million in annual revenues, the liabilities on our balance sheet, many of which are due to lawsuits we inherited with the TPCO business combination, forced us to file for a voluntary receivership that is necessary to achieve an orderly sale of the business.
We believe Gold Flora is a valuable business. However, receivership will allow us to continue the operation as it is, rather than having the company divided up among different creditors. This is in no stakeholder’s best interests. After carefully weighing these factors and the duties that were owed to each stakeholder, the company’s board decided to initiate receivership proceedings.
The receiver, once appointed, can give you more details about the proceedings. Frank A. Segall of Blank Rome LLP is serving as legal counsel to Gold Flora.
As a result of its filing for a voluntary receivership, Gold Flora anticipates its common stock and warrants will be suspended from trading on the Cboe Canada exchange. Gold Flora will eventually be removed from Cboe Canada.