John SchroyerTilt Holdings (Cboe: CA:TILT) (OTCQB: TLLTF) on Thursday provided more details to investors regarding its defaults to its cannabis landlord on two properties in Massachusetts and Pennsylvania. The Arizona-based multistate operator said it’s facing the possibility of both leases being terminated and legal action over nonpayment of $4.1 million in back rent.
The legal reckoning, with marijuana landlord Innovative Industrial Properties (NYSE: IIPR), was first made public on Monday, when IIP notified its investors of a trio of companies that were in default, including Tilt.
The other two companies facing defaults are Arizona-based 4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF) and California-based Gold Flora Corp. (Cboe Canada: GRAM) (OTCQB: GRAM), the latter of which is also heading into receivership and going up for sale.
According to Tilt, it owes Innovative Industrial $2.9 million over a property in Taunton, Massachusetts, that has long been used by Tilt subsidiary Commonwealth Alternative Care and another $1.1 million for a property in White Haven, Pennsylvania, that has been utilized by Tilt subsidiary Standard Farms LLC.
The debts are for back rent, late charges, interest and security deposit replenishment, the company said in a press release, and it faced an April 4 deadline to pay up. Missing that deadline gives Innovative the right to evict Tilt and sue over the unpaid bills.
Tilt attempted to negotiate with the real estate investment trust, but the best deal it could get was an agreement that Innovative would hold off on pursuing eviction in exchange for “payments in satisfaction of the April rent obligations,” it said in a release.
“The company is committed to negotiating in good faith to resolve the outstanding amounts and secure favorable terms for its operations,” Tilt said in the release.
Tilt lost $41.4 million in the fourth quarter of last year and $99.7 million for the entire 2024 calendar year, the company reported in March. At the end of last year, Tilt had just $4.3 million in the bank.
