Cannabis Defaults Are Piling Up: 3 Companies Just Missed Payments—Who’s At Risk Next?
The cannabis industry is grappling with a wave of financial distress as multiple publicly traded companies defaulted on key real estate obligations this past week. Gold Flora (OTC:GRAM), 4Front Ventures (OTC:FFNTF) and TILT Holdings (OTC:TLLTF), three major players in the cannabis sector, were all declared in default on leases held by cannabis-focused real estate investment trust (REIT) Innovative Industrial Properties (NYSE:IIPR). The developments highlight the mounting pressure on operators navigating a capital-starved environment, high taxation and an oversaturated market.
Gold Flora’s Collapse: A Long Time Coming
On March 27, 2025, Gold Flora filed for voluntary receivership. IIPR subsequently declared Gold Flora in default of three leases, with a total invested value of approximately $117 million and an embedded cost of around $254 per square foot.
Gold Flora’s financial struggles were not unexpected. According to a recent Viridian Capital Advisors analysis, the company had been hovering around a 5x liabilities-to-market cap ratio since late 2022—an early warning sign of distress. It officially crossed the critical 10x threshold in October 2024, a point at which Viridian noted that companies typically spiral into deeper financial …