Legal Battle Fallout: Parallel & IIP Face Dissolution As $5.8M Rent Default Leaves Distressed Assets In Balance

A Pennsylvania state court has ruled for the dissolution of Gooblend Pennsylvania LLC, a subsidiary of Parallel, a prominent cannabis operator.

$5.8 Million Rent Default In Legal Battle

The court order, disclosed on August 24, resulted from Goodblend's failure to pay $5.8 million in rent and penalties to its landlord, Innovative Industrial Properties Inc. IIPR.

This legal clash saw Surterra Holdings, the majority owner of Goodblend, seeking dissolution due to operational challenges, while Medical Bloom Inc., the minority owner, opposed the move.

Judge Christine Ward's directive mandates the development of a plan for Goodblend's dissolution and disposal of its medical marijuana assets.

Parallel and IIP's Collaboration: Potential Sale Of Distressed Assets Looms Amid Legal Battles

Parallel and IIP's initially celebrated collaboration took a sour turn. The subsidiary purchased a facility for $22 million, promptly sold it to IIP for $41 million, and Goodblend rented it for 20 years.

However, after Goodblend ceased payments, IIP filed a lawsuit that ultimately led to this dissolution ruling.

Parallel's woes extend beyond this dispute, with its decision not to proceed with a $1.8 billion public offering causing a decline in IIP's value.

With Goodblend's impending dissolution, its assets, including medical marijuana, can now be sold off to pay creditors and members.

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