A Denver-based marijuana greenhouse developer is filing for bankruptcy after raising more than $15 million from investors.
According to Denver news site BusinessDen, GrowCo owes at least $8.6 million to roughly 50 creditors.
GrowCo is filing for Chapter 11 bankruptcy, which can be used to keep a business afloat by reorganizing and paying back debts over time.
Here’s what you need to know:
- GrowCo, which is not a plant-touching company, was formed in 2014 to provide cultivation infrastructure and serve as a landlord for legal cannabis businesses as well as provide administrative and support services.
- The company’s assets were listed at $1 million to $10 million.
- GrowCo disputes several million dollars of what is owed to creditors, including a claim from Blue & Green, which sued GrowCo last year for $2.1 million, asserting the greenhouse builder had failed to pay back loans.
- GrowCo is a subsidiary of Aurora, Colorado-based Two Rivers Water & Farming, a company that owns water rights in southwestern Colorado.
