Massachusetts Revolutionary Clinics goes into receivership owing almost $10 million

Massachusetts-based cannabis retailer and cultivator Revolutionary Clinics and its affiliated companies Revolutionary Growers and C D Services of America owe $9.6 million to various lenders and landlords. Last week, the main lender, OPCIV LLC, asked a judge to place the company in receivership. The lender said in its complaint that C D Services told the company it was in default of certain covenants in July 2024.

CD Services got into this mountain of debt through a secured convertible note that was amended and restated in 2023. The company also had an amended and restated promissory note that was also updated in 2023. Despite amending the loans several times, the company still found itself in trouble and began laying off employees and winding down the businesses.

This is where the lender stepped in claiming C D Services was in default of the loans by taking these actions and asked that a receiver be appointed in order to try to recover some of its losses which amounted to $9,665,978. The lender claims that C D Services doesn’t dispute that it owes the money, but is worried that without the receiver in place, the assets will be lost, squandered or destroyed.

According to Revolutionary’s website, the company has three store locations. Its producer Rev Brands is also listed on the website as an exclusive Massachusetts production partner of Kiva, El Blunto and Mr. Moxey’s Mints.

The company’s assets were collateral for the loans, including the mortgage deed to a property in Fitchburg, Massachusetts. Law360 reported that the retailer is also facing suits for unpaid rent on the Fitchburg facility and one of its Cambridge locations, which it has closed, according to separate court filings and counsel for the Fitchburg landlord.

NewLake Capital’s involvement

A year ago, NewLake Capital Partners (OTC: NLCP) announced that in connection with Revolutionary Clinics raising new third-party capital, NewLake entered into a lease amendment and forbearance agreement for its existing lease with Rev Clinics on NewLake’s 145,852 square foot cultivation facility in Massachusetts, where Rev Clinics was the sole tenant. At the time, NewLake said it recovered a portion of unpaid rent, extended the lease term by five years, reduced future monthly rental payments and received up to 9.95% of equity in Rev Clinics in the form of warrants.