Adam JacksonA lawsuit has been filed against medical cannabis company Vireo Health, a subsidiary of Goodness Growth Holdings Inc. (OTC: GDNSF), for allegedly failing to pay $1.5 million in rent for its leased industrial space in Puerto Rico.
The suit, launched by Cruce Davila Development LLC, concerns a 10-year lease agreement for approximately 32,000 square feet at the Cruce Davila Business Park in Barceloneta, which began in April 2019.
According to the complaint filed in federal court, Vireo Health de Puerto Rico LLC, a subsidiary of Minnesota-based Vireo Health, ceased all rental and maintenance payments in November after informing the property owner of its intent to vacate the premises immediately.
“Since it notified the termination of the Lease, the Tenant has failed to make any rent or (common area maintenance) payments owed,” the firm wrote in a filing.
Cruce Davila Development is seeking damages that include unpaid rent, costs for reletting the property, and additional expenses incurred due to the lease termination. Documents show that the base rent was set to increase from $257,920 in 2024 to $293,200 by 2028, alongside an annual $72,000 fee for common area maintenance.
Cruce Davila Development named both Vireo Health de Puerto Rico and its parent company, Vireo Health Inc., in its efforts to obtain the owed amount. As of press time, there’s been no response from Vireo Health regarding the lawsuit or the allegations.
1791000-1791354-https-ecf-prd-uscourts-gov-doc1-15919344378
