The demise of High Times has left a trail of unpaid bills and unhappy investors.
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The receiver for ExWorks, the company that lent High Times Chairman Adam Levin money to buy the business, has appointed Kevin Singer of Receiver Specialists to oversee the sale of High Times’ assets to settle outstanding debts.
High Times and Levin used several properties as collateral that are now poised for sale after ExWorks wasn’t paid back.
Stephen Kunkle, the receiver for ExWorks, filed a court document on April 4 in the Superior Court of California, Los Angeles County, naming Singer as the High Times receiver. The document also issued a temporary restraining order against the business and its related entities, which could explain why High Times dispensaries were recently closed.
The assets include:
The cannabis licenses were listed as follows:
According to the court document, High Times must cooperate with Singer and deliver all revenue and income generated from the properties. They also must turn all property keys and the originals of all books, records, ledgers, bank records, documents, subcontracts, contracts, computer software, tax ID numbers, and other business records wherever located relating to the property.
In addition, High Times has to turn over all cash and security deposits derived from the estate, rents, profits, and all maintenance materials, supplies, equipment, inventory, and tools, plus the real property located at 2991 Martin Luther King Jr. Blvd in Lynwood, California.
Singer will be able to operate, manage, and control the estate, plus collect and receive any rents, sub-rents, lease payments, profits, and other income from the estate, to protect, preserve, improve, and maintain the estate. However, Singer won't be responsible for paying any unpaid bills from before he took over as a receiver.
The court document also states that the borrower could declare bankruptcy, or it could enter into a settlement with ExWorks. If the latter comes to fruition, Singer would return the assets to High Times.
Neither option appears likely, as bankruptcy is not usually an option for cannabis businesses and the two entities have been unable to settle for some time now.
Singer did not comment on the court document other than to say he would issue a report to the court by the end of May.
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