Green Roads is bankrupt less than two years after its acquisition by The Valens Co., a Canadian cannabis manufacturer.
The Deerfield Beach-based company filed for Chapter 11 bankruptcy reorganization on March 6 in U.S. District Court for the Southern District of Florida. Founded in 2013, Green Roads manufactures and sells cannabidiol (CBD), a non-psychoactive compound found in hemp and cannabis.
The firm has $6.05 million in assets on hand and $5.6 million in unsecured liabilities to creditors, court documents said. The liabilities include more than $783,000 owed on its lease at 601 Fairway Drive, where Green Roads' headquarters is located. Other large creditors include brilliant retail company Signifi Solutions ($813,800), IHeartMedia ($478,000), and American Express ($371,444).
Increased competition in the CBD industry, higher supply chain costs, and the closure of independent retailers during the Covid-19 pandemic all contributed to Green Roads' financial losses, according to a declaration from CEO Julie Pilch.
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