A year-and-a-half behind on rent, in a facility producing almost a thousand pounds less a year than promised
Whether you’re a small cannabis business operator who is struggling to pay your own bills because people who owe you money can’t manage their own debts, or a dispensary customer who has noticed favorite or familiar brands suddenly vanish from a particular menu, you’re feeling the effects of market saturation and spasming overleveraged entities.
These stresses don’t make frequent headlines, but now, amidst increasing stakeholder clamor and litigation—and talk among regulators about what could possibly be done about the problem—you can expect more and more attention to swing toward the topic of delinquent payments.
Boston news site Universal Hub reported on one such trainwreck last October in which a “South Carolina lender focusing on the marijuana industry asked a judge to let him take control of Middlesex Integrative Medicine, which has a dispensary in Norwood and a growing facility in Leominster, because he says it’s no longer paying him back on millions in loans and its Leominster plant is no longer producing enough product to keep the company afloat.”
A suit filed in Suffolk Superior Court charged that MIM was a year-and-a-half behind on rent, in a facility producing almost a thousand pounds less a year than was promised per a loan agreement and was more than a million bucks behind on their National Grid bill, among other things.
And now, that lender’s selling off the parts. Per a public announcement, “assets of Middlesex Integrative Medicine, Inc. & MIM Management, LLC [are] to be sold at Public Auction [on] Friday, March 15, 2024 at 11:00 AM.” More from the notice below:
MIM Massachusetts Convertible Notes Series III, a series of S Curve, LLC, in its capacity as the Secured Party (the “Secured Party”) of Middlesex Integrative Medicine, Inc. and MIM Management, LLC (together “MIM”) is conducting an article 9 auction sale of its right, title, and interest in all assets of MIM including but not limited to their name, licenses, inventory, fixtures & personal property.
Middlesex Integrative Medicine, Inc. is a vertical cannabis licensee in Massachusetts and currently holds a fully operational cultivation and processing facility in Leominster, MA, as well as a fully operational medical dispensary in Norwood, MA. MIM also holds special permits and a host agreement for a medical and adult-use dispensary in Waltham, MA. All facilities are licensed with the Cannabis Control Commission of Massachusetts.
Addressing the larger open invoice issue, at the Feb. 9 meeting of the Cannabis Control Commission, members said that they are searching for examples of solutions used in other states, as well as in laws put in place by the Mass Alcoholic Beverages Control Commission. Among other guardrails, the ABCC maintains a delinquent list: “No licensee shall sell or deliver, directly or indirectly, alcoholic beverages to a licensee whose name is posted on the delinquent list, except for payment in cash on or before delivery, and no licensee who is posted on the delinquent list shall purchase or accept delivery of any alcoholic beverages except for payment in cash on or before delivery.”
