A medical cannabis dispensary in a Boston suburb has been sued by a creditor for more than $21 million in debt and interest the shop owes.
According to the Boston Business Journal, Quincy-based Ermont is being sued for $21.8 million by Teneo Funds SPVi.
Teneo requested in its lawsuit that the court halt any transfer of assets by the dispensary and that a receiver be appointed to run the medical marijuana business.
The lawsuit follows Teneo’s acquisition of the debt from Ermont’s former creditor, Tilt Holdings, which sold the debt to Teneo in February for $1.25 million and a portion of future collections – a fraction of the overall value.
Tilt Holdings acquired the debt in 2018 and extended a line of credit to Ermont.
Selling the debt was part of Tilt’s attempt to resolve issues with Massachusetts regulators over allegations the Boston-based company had overstepped industry caps on ownership stakes in marijuana businesses in the state. Tilt paid a $275,000 settlement to the state.
In March, Ermont said it would pay all debt in question except for $220,000, the Business Journal reported. But Teneo claimed that, as of April, the debt was in default.