Herbl, a major licensed California marijuana distribution company, is in receivership after falling behind on a key loan, a source close to the situation confirmed to MJBizDaily on Tuesday.
The collapse of Herbl, which reported handling $700 million worth of product sales in 2022, is the most prominent failure of a cannabis company in the state to date and has major implications across the industry.
ADVERTISEMENT
Potentially tens of millions of dollars in unpaid invoices are due to brands across the state, which now fear that that revenue, including for product already sold, is lost forever.
The state might also be due millions in unpaid taxes.
Herbl’s financial troubles underscore the upheaval within California’s marijuana industry as brands struggle to collect on unpaid invoices.
The terms of Herbl’s receivership mean that investors and other claimants due money from Herbl might be paid before brands, according to people
Read full article on Marijuana Business Daily
