One of Connecticut’s Four Cannabis Producers Sold Following Foreclosure

One of Connecticut’s four licensed cannabis producers was sold last week, according to a filing with the Securities and Exchange Commission (SEC). NewCo, a subsidiary of DXR Holdco, purchased Theraplant, which was in foreclosure, for an undisclosed sum. 

According to the filing, Theraplant had $4,107,400 worth of property in foreclosure. NewCo indicated those obligations would be “satisfied in full” but that $5 million in other financial obligations “remain outstanding.”  

Theraplant’s chief financial officer, Bernard Wang, was fired in connection with the deal.  

In a statement to CT News Junkie, Department of Consumer Protection spokesperson Kaitlyn Krasselt said the ownership change “did not impact [Theraplant’s] operations and they are continuing to supply the market without incident.” 

“Maintaining appropriate market supply, particularly for medical patients, remains a priority for the department and once notified of a proposed change in ownership the department reviews the transaction for any supply impacts and works with licensees to ensure adequate supply.” — Krasselt to CT News Junkie 

Greenrose Holding Company, Theraplant’s previous owner, last August disclosed $24 million in losses to the SEC during the first half of 2022 and the company also faced a debt collection lawsuit in Arizona, according to a CT News Junkie report.