Lender Expresses Concern Over Cannabist Company's 'Pray And Hope' Approach

FiSai US Management, a major creditor of The Cannabist Company CBSTF is growing increasingly concerned over the company's management.

FiSai, which holds $50 million in secured notes due in 2026, has taken the unusual step of publicly airing its frustrations, reported Debra Borchardt of Green Market Report (GMR).

The lender sent a letter to New York-based The Cannabist on September 26, citing concerns about liquidity issues, underperformance, and a lack of strategic direction. FiSai accused CEO David Hart and chairman Michael Abbott of using a "pray and hope" approach, banking on favorable external factors, such as a positive presidential election outcome, to bail the company out.

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Mounting Financial Pressure

The Cannabist's debt burden is significant.

By 2025, the company faces $60 million in debt due, with an additional $185 million in senior secured debt maturing by February 2026. FiSai disclosed that it had offered refinancing options on September 3. However, the company has yet to respond, per GMR.

FiSai highlighted the competitive landscape, noting that other major cannabis companies face similar debt deadlines. The high demand for refinancing could make capital scarce and expensive.

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Series Of Missteps

FiSai's complaints include what it calls a "just-in-time" financing strategy. The lender criticized the sale of key assets to Verano VRNOF, describing the move as a last-minute decision driven by poor cash management. FiSai also pointed to the failed Cresco CRLBF merger, claiming it exposed stakeholders to unnecessary risks and affected the company's overall poor performance compared to other cannabis operators.

FiSai's founders, Erich Griffin-Mauff and Jared Cohen, are experienced cannabis industry veterans. They expressed disappointment, particularly given their backgrounds in strategic development and corporate finance. With tensions between FiSai and The Cannabist now out in the open, the company’s financial future remains even more uncertain.

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