Green Market Report
The legal battle between distressed cannabis operator Parallel and its landlord, Innovative Industrial Properties Inc. (NYSE: IIPR), has taken a new turn as a Pennsylvania state court ordered the dissolution of Parallel’s subsidiary, Goodblend Pennsylvania LLC, over its failure to pay $5.8 million in rent and penalties.
Judge Christine Ward of the Allegheny County Court of Common Pleas directed Surterra Holdings, the majority owner of Goodblend and another Parallel-controlled entity, and Medical Bloom Inc., the minority owner, to devise a plan for Goodblend’s dissolution and the disposal of its medical marijuana.
The directive was part of an order signed on Aug. 21 and disclosed publicly on Aug. 24, according to Law 360.
“All assets of Goodblend Pennsylvania LLC, if any, shall be distributed among the creditors and members,” the judge wrote.
Surterra, a subsidiary of Atlanta-based cannabis operator Parallel and the owner of 75% of Goodblend, had filed for the dissolution in July, citing the company’s inability to continue operations. Medical Bloom, which owns the remaining 25%, opposed the request, according to Surterra’s complaint.