Another embattled Michigan cannabis company is likely going to end up in the hands of its lenders.
Jackson-based Comco LLC, doing business as Comco Wellness, is being put on the auction block by a court-ordered receiver after nine months in Jackson County Circuit Court.
Most of the cannabis company’s assets are set to be sold to a stalking horse bidder, a new entity called Bag Boys LLC.
The stalking horse bidder is an affiliate of Farm Marcellus, a marijuana grower 30 miles southwest of Kalamazoo with four Class C grow licenses.
Farm Marcellus has been funding Comco in receivership since August last year and is offering up at least $1.9 million to satiate creditors and take ownership of the company.
The stalking horse bid breaks down with a $1.031 million cash payment up front and an additional $862,000 paid to creditors over 12 months, according to court documents.
Other considerations are expected to be included in the purchase price, but are not currently known, said David Dragich, attorney for the receiver in the case, Gene Kohut.
On top of the cash consideration, Farm Marcellus will forgive the amount its loaned Comco during receivership, which is expected to be between $800,000 to $900,000, according to the court records.
Under the deal, Bag Boys would take ownership of Comco’s grow operation at 12584 Wooden Road in Jonesville, which has four Class C licenses and a processor license. Comco’s grow operation at 8891 Pulaski Road in Concord is not part of the stalking horse bid. That property is expected to be sold separately, Dragich said.
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