The age of cannabis receiverships is here. If you’re a creditor, operator, landlord, or investor in a troubled cannabis business, you have a choice: watch value evaporate, or step up and run a disciplined, court-supervised sale that maximizes recoveries and preserves the company as a going concern. Because federal prohibition blocks access to bankruptcy courts (cannabis companies can’t file Chapter 11 like other businesses), state-court receivership has become the go-to process for plant-touching companies to orderly market and sell assets under a receiver’s oversight.

Importantly, receivership doesn’t have to mean rock-bottom pricing. In cannabis especially,  where licenses are scarce and operations are fragile, real value is preserved or lost based on execution. From my experience, great outcomes come from controlling key variables, reducing buyer risk, and spotlighting a path to upside even in distress.

Green Life Business Group: Setting the Market in Cannabis Receiverships                                 At Green Life Business Group, we’ve been at the center of several high-visibility cannabis receiverships nationwide. Our team has designed competitive sale processes, driven bidder engagement, and closed transactions under court confirmation; often setting the market for what distressed cannabis assets can fetch. A few examples:

• High Times / Hightimes Holding Corp.: We handled the receivership sale of the iconic High Times portfolio, marketing everything from the flagship West Hollywood dispensary to valuable IP like the domain 420.com. The process reportedly generated 36 offers in just 17 days, and ultimately the High Times magazine and Cannabis Cup brands were bought out of bankruptcy for $3.5 million. (The premium web domain 420.com alone attracted six-figure bids, underscoring the demand we tapped into.
• StateHouse Holdings (Harborside / Urbn Leaf / Loudpack): In late 2024, we brokered what may be the largest cannabis receivership sale in U.S. history – the StateHouse Holdings asset portfolio. This statewide collection of 11 retail stores (Harborside and Urbn Leaf brands), plus cultivation, nursery, and processing facilities, boasted over $120 million in combined annual sales. Under our management, the court-supervised bidding (ending Jan 15, 2025) drew strong interest and set a new benchmark for distressed deals at this scale.
• Element 7 (Multi-Site Retail & Licenses): In mid-2025, we ran an innovative Zoom auction for Element 7’s California portfolio – five retail/license sites located in Marina, Rio Dell, South San Francisco, Oakland, and Firebaugh. This court-ordered receivership sale was widely marketed with a June 30 bid deadline. By conducting the auction via Zoom (with upfront bidder deposits and pre-approved procedures), we maximized participation from qualified buyers across the state.
• Canndescent: Our track record extends to distressed cultivation assets as well. We facilitated the sale of a 67,000 sq. ft. cannabis cultivation facility (part of Canndescent’s holdings) through receivership, highlighting that even large-scale grows can find eager buyers when packaged and presented correctly. This demonstrated our ability to execute receivership transactions not just in retail and brands, but also in high-value cultivation operations.

What Actually Maximizes Value in a Cannabis Receivership?                                                  Whether you’re a receiver, secured creditor, board member, or potential buyer, focusing on the following levers can mean the difference between a mediocre outcome and a great one:

Sell it as a going concern whenever possible: Keep the business operating (and in good standing) throughout the sale process. Retain key staff and continue serving customers if feasible. Buyers will pay a premium for continuity i.e., active licenses, sellable inventory, and revenue still flowing. Even if operations must pause, maintain all licenses in good standing and have a clear, budgeted plan to restart. The goal is to present an ongoing business, not a shuttered one, at auction.

• Design a competitive process and prove it in court: Don’t run a secret or sloppy sale. Set up a structured, transparent bidding process and be prepared to show the judge you left no value on the table. This means establishing a secure data room with a universal NDA and requiring proof-of-funds from all interested parties. Launch a national marketing campaign to reach strategic and financial buyers (not just local operators). Publish a clear timeline (launch date, Q&A cutoff, bid deadline, auction date, court hearing) so everyone knows the rules. Whenever appropriate, use a stalking-horse bidder to set a floor price,  with reasonable overbid increments and a modest breakup fee that encourages challengers rather than deterring them. Finally, get the court to bless simple, defensible bid procedures up front. By the time you’re in court for approval, you can demonstrate a competitive, fair process that maximized value.
• Package assets the way buyers underwrite: Present the business in the same way a buyer will evaluate it. That means providing the data that matters for each asset type. For retail dispensaries, highlight the license status, lease terms (and assignability), store performance (revenue, customer traffic, normalized margins), any local taxes or fees, and valuable assets like POS data or loyalty program stats. For cultivation or processing facilities, detail the canopy size and production capacity, yields and cost of goods by SKU, the state of environmental controls (HVAC, lighting, etc.), genetics or IP included, harvest schedules, and any offtake or tolling contracts in place. For brands and intellectual property, provide clarity on trademark ownership (classes and territories covered), domain names and social media handles, historical revenue attributable to the brand, and assurance of clean title (no hidden liens or infringement issues). In short, package each component as a turnkey opportunity with clear upside, so buyers can easily underwrite value without uncertainty.
• De-risk the close ahead of the auction: One of the biggest value-killers is a winning bid that falls through due to transfer issues. Proactively remove as many closing uncertainties as possible before the auction. For example, work with landlords early to secure estoppel certificates and consent to assignment of leases; have those assignment documents ready in the data room. Coordinate with regulators ahead of time on change-of-ownership approvals or any required M&A filings – and set realistic timelines for transfer so bidders know what to expect. Map out any tax obligations, successor liability questions, or UCC lien releases that could affect the sale, and clearly communicate which liabilities a buyer will assume (or avoid). By delivering a near “plug-and-play” deal to the highest bidder, you increase bidder confidence and the price they’re willing to pay.
• Tell a growth story buyers can model: Buyers pay up when they see a credible path to ROI. Offer a concise investment memo or executive summary that outlines the growth opportunity post-sale. This might include market comparables, the store’s customer demographics and trade area, any expansion or optimization projects in the pipeline, and even a 13-week cash flow forecast to bridge the business through the closing period. Show how the buyer can step in and quickly ramp revenue or profitability. When bidders can easily model the upside, they are more likely to bid aggressively rather than low-ball for perceived risk.

Why Receiverships Are Surging (and What It Means for Pricing)                                               The recent surge in cannabis receiverships is no coincidence. Legal operators are struggling under crippling tax burdens and fierce illicit-market competition, which squeeze margins and cash flow. In some cases, companies are also saddled with heavy debts or legal liabilities from ambitious mergers and expansions that didn’t pan out (for example, Gold Flora’s 2023 merger left it absorbing a partner’s $575 million burn rate). All these pressures have pushed more operators into court-monitored sales as a last resort to repay creditors.

The good news is that a well-run receivership process can still attract capable buyers and command respectable valuations – even in today’s stressed market. By removing liens and uncertainties, keeping the licenses alive, and running a competitive auction, distressed cannabis assets don’t have to sell for pennies on the dollar. With multiple bidders and a clear path to operation, receivership sales can approach fair market value rather than true “fire sale” prices. In short, even though the circumstances are distressed, the outcome doesn’t have to be, if you execute the process correctly.

Why Buyers Pursue Receivership Assets                                                                                          For savvy buyers, receivership sales can be rare opportunities to acquire licensed cannabis assets at significant discounts compared to traditional M&A deals. Distressed sales often reflect temporary hardships rather than long-term potential, allowing well-capitalized purchasers to swoop in at a fraction of the cost of building or buying similar assets in a healthy market. Moreover, because these transactions are court-supervised to protect creditors, the assets are typically sold “free and clear” of liens and encumbrances, giving buyers clean title and minimal legacy risk.

These court-approved auctions enable buyers to unlock hard-to-secure assets – retail licenses in limited markets, fully built-out cultivation facilities, established brands with loyal followings – that would be otherwise difficult or costly to obtain. And since many receivership sales keep the business running through closing (with licenses, staff, and customers still in place), the buyer can step directly into an operating enterprise on Day One. Essentially, you’re acquiring a functioning cannabis business at a distressed valuation, with immediate cash flow upside once you stabilize and optimize under new ownership. For those positioned to move quickly, it’s an attractive way to expand into new markets or verticals at a bargain price.

Bottom Line                                                                                                                              Receiverships don’t have to be fire sales. With the right brokered process, transparent bid rules, and pre-cleared closing paths, everyone wins: the court gets certainty, creditors get fair recoveries, buyers capture real upside, and the industry keeps valuable assets as going concerns rather than seeing them fall apart. That’s how you truly maximize value in a cannabis receivership.

What You Will Learn:

• What is a cannabis receivership and why is it becoming more common?
• How does federal prohibition impact bankruptcy options for cannabis businesses?
• Why is state-court receivership the preferred process for distressed cannabis companies?
• How can a disciplined receivership sale preserve value in a struggling cannabis business?
• What factors determine whether a cannabis receivership sale fetches a strong price?
• How did the High Times receivership demonstrate demand for cannabis IP and brand assets?
• What made the StateHouse Holdings receivership one of the largest in U.S. history?
• How did Element 7 use a Zoom auction to maximize bidder participation?
• Can large-scale cannabis cultivation facilities, like Canndescent, successfully sell through receivership?
• What steps should receivers take to design a competitive and court-approvable sale process?
• How should cannabis assets be packaged to match buyer underwriting expectations?
• Why is de-risking the closing process critical to maximizing sale value?
• How can a well-run receivership sale prevent assets from selling for “fire sale” prices?
• Why are receivership assets attractive to buyers compared to traditional M&A opportunities?

The post Turning Crisis Into Opportunity- Navigating Cannabis Receivership Successfully appeared first on Cannabis Industry Journal.