Tilt Holdings, (Cboe : CA :TILT)(OTCQB : TLLTF), on Thursday gave investors more details about its defaults with its cannabis landlord in Massachusetts. Arizona-based operator Tilt Holdings said the company could face termination of leases as well as legal action due to nonpayment of back rent of $4.1M.
IIP, which is the owner of Innovative Industrial Properties and a marijuana grower, first announced Monday that Tilt, among other companies, was in default.
The other two companies facing defaults are Arizona-based 4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) and California-based Gold Flora Corp. (Cboe Canada: GRAM) (OTCQB: GRAM), the latter of which is also heading into receivership and going up for sale.
Tilt owes Innovative Industrial $2.9M over an asset in Taunton Massachusetts that was used for many years by Tilt’s subsidiary Commonwealth Alternative Care, and $1.1M on a White Haven Pennsylvania property that had been used by Tilt’s subsidiary Standard Farms LLC.
According to a company press release, debts include back rent, late fees and interest as well as security deposit replenishment. A deadline for paying was April 4. Innovative can evict Tilt if it misses that April 4 deadline. It will also be able to take legal action over unpaid bills.
Tilt tried to negotiate with Innovative, the real estate trust. But the deal that it was able to get from it was an agreement Innovative would not pursue eviction if it received “payments for satisfaction of April rent obligations.”
Tilt’s release stated that the company was committed to good faith negotiations to secure favorable conditions for its business and to solve the outstanding debts.
The company announced in March that Tilt had lost $99.7 millions for 2024 and $41.4 million during the last quarter. Tilt only had $4.3m in its bank at the end of the last calendar year.