Herbl, a major marijuana distribution company in California, has fallen into receivership due to a default on a significant loan.
The collapse of Herbl, which handled around $700 million in product sales in 2022, has far-reaching consequences for the industry.
Many brands in the state face the risk of losing millions of dollars in revenue due to unpaid invoices, while the state itself may have millions in unpaid taxes, first reported MJBizDaily.
Herbl's financial troubles highlight the turmoil within California's marijuana industry, as brands struggle to collect on outstanding invoices.
The terms of the receivership prioritize investors and claimants over the brands seeking payment.
Related News
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.