Top Cannabis Investment News, Member Posts, Cannabis Investment Daily Indices and more!

2w ago Cannabis greenmarketreport Views: 168

-

Harvest Health or rather Trulieve (OTC: TCNNF) since it bought Harvest Health must be heaving a sigh of relief that it’s High Times on the hook for the rent at Geary St. in San Francisco. Before it was acquired Harvest Health had tried to quickly jump into the San Francisco market by signing numerous agreements. One of them was with Alexis Bronson from the Have A Heart 2 CA LLC  as a social equity licensee for a dispensary at a prime shopping spot on the famous Geary Street.

Touted at the time as snagging a spot in the luxury shopping street, neighbor Chanel boutique protested. This was early 2020 and right before the pandemic struck. However, Harvest Health didn’t waste much time on some of the assets including 152 Geary and flipped some of its properties to High Times who was anxious to diversify into dispensaries. Soon thereafter, COVID took hold and San Francisco’s downtown has yet to recover. The problem with retail rental contracts is that many of them can’t be broken with covid blame. The rent payments could be delayed, but as the lockdowns have ended that excuse has worn thin. Something High Times has learned the hard way.

Judge Rules For Landlord

On May 31, a judge found that Vijaya Properties (High Times) owes the building owner $4.9 million in back rent as first reported in Cannabis Law Report. The dispensary was never opened and to add insult to injury, the building is only worth $20 million. While the plaintiff in the case is 152 Geary Street, it is owned by Thor Equities who actually wanted $5.9 million, but the judge said that since the landlord basically took the $1 million in a credit facility that was somewhat like a deposit, that money would be subtracted. 

The judge noted that a tenant can get out of a lease if another tenant comes along. The landlord could ask the current tenant to leave and replace them and in effect take back possession. But 152 Geary hasn’t done so and so High Times is stuck. Geary St has experienced some scary smash and grabs robberies this past year that were so frightening that police were blocking the street from car traffic as closing hours came near. So it’s no surprise that with crime and a depleted downtown along with a moribund retail scene the landlord probably couldn’t find a tenant willing to pay that much. There was also nothing in the rental contract that gave High Times an “out” in case it never opened the dispensary. In other words, whether they ever opened a business or not, the rental agreement remained in place.

The trial had no jury and was handled remotely. High Times or Vijaya Properties as it’s listed in the case did not dispute the money owed. Side note – Vijaya is a botanica plant with medicinal properties and shares a lineage with cannabis.

Good Luck Getting Money

The options for High Times are limited. It could argue that the previous tenants – the Have a Heart group established a track record of not paying rent and blame the breach on them, but that looks like a pretty flimsy excuse. Plus, Have a Heart owns four of the licenses that are doing business as High Times dispensaries so that could be awkward.

-

It could be that High Times has the money to pay the back rent. It is a private company that hasn’t filed financial statements since 2019 and it’s anyone’s guess if the money is there or not. Though in the past when High Times has a monetary judgment against it, it often just doesn’t pay forcing the plaintiffs to keep going to court to try to get their money. The company owed a handicapped woman $100,000 for an injury at a 2018 Cannabis Cup that it repeatedly wouldn’t pay. It eventually got settled again to the tune of $45,000 in cash and $10,000 in High Times stock, but again didn’t pay according to a report in Cannabis Law Report.

High Times On The Hook For $5 Million in Back Rent on Green Market Report.


Today's Cannabis Investment Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.