I’ve been writing about the Chalice receivership process since late May, when Chalice Brands Ltd. (OTCMKTS: CHALF) filed an Oregon Circuit Court complaint. In that Oregon lawsuit, Chalice brought claims against five local subsidiaries to drive them into receivership, claiming some $35 million owed. This lawsuit was orchestrated with a parallel Canadian proceeding. In that one, Chalice and its affiliates received protection from creditors, while the company attempts to reorganize without filing bankruptcy.
I haven’t been following the Canadian proceeding, but things are coming into focus here in Oregon. I’ll share two takeaways today. First, the bid and sale process shows that the market for Oregon cannabis businesses remains depressed and unattractive, even at steep discounts. Second, the proposed sale of the Oregon subsidiaries’ assets won’t sit well with many people. This is because the sale is teed up for the bargain basement price of $3 million, to buyers who could be fairly called Chalice “insiders.”
The market for Oregon cannabis assets is awfully weak
We didn’t need a Chalice faceplant to know things were bad. Here in the Portland office, we’ve spent much of 2023 helping clients sell, or attempt to sell, Oregon cannabis businesses and related assets. On
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