If the companies—including Chicago-based Cresco Labs, Green Thumb and Verano—fully paid their federal tax bills, only one of the 10 would have more than 10 months’ worth of cash for operations.
en publicly traded multistate cannabis companies are carrying over half a billion dollars in federal tax debts, according to an analysis of financial filings by Green Market Report.
All told, multistate operators (MSOs) Acreage Holdings, Ascend Wellness, Ayr Wellness, Cresco Labs, Columbia Care, Curaleaf, Green Thumb Industries, TerrAscend, Trulieve and Verano Holdings owe the Internal Revenue Service an eye-popping $507,193,000, according to their second quarter financial reports.
Just two of the companies, Curaleaf and Verano, hold the bulk of the tax debt. Combined they owe the IRS $286 million.
Not only that, but if the companies were forced to fully pay their federal tax bills, only one of the 10 – Green Thumb Industries – would have more than 10 months worth of cash left with which to continue operating.
Verano Holdings would be financially underwater in a big way, with $161.4 million owed to the IRS compared with its $92.8 million cash on hand – meaning it owes 78% more in taxes than it had in cash at the end of its second quarter.
And it’s not clear when the companies plan on paying.