PRESS RELEASE

Opus Consulting Completes Financial and Operational Restructuring of Ermont, Inc. in First-of-its-Kind Receivership Sale to Multi-State Operator MariMed, Inc.

PORTLAND, ME, March 9, 2023 –  Partners LLC (“Opus Consulting”) has completed the sale of the business operations and assets of Ermont, Inc. a vertically integrated medical cannabis operator, to an affiliate of multi-state cannabis operator MariMed, Inc. The history-making transaction is a key milestone in the first-ever cannabis receivership in New England.

Approved today by the Massachusetts Cannabis Control Commission (“CCC”), after earlier approval by the Massachusetts Superior Court, the transaction preserves the Ermont jobs and its cultivation and medical dispensary operations. Opus Consulting—a leading turnaround management and business improvement firm with extensive experience in managing and operating distressed assets in cannabis and other complex industries—serves as the court-appointed receiver for seller Ermont. The total consideration for the sale transaction was $13 million, in a combination of cash, stock, and debt.
“Competition is increasing, wholesale prices are falling, and more and more cannabis licensees are falling into a state of distress in Massachusetts and other maturing markets,” explained Jacques Santucci, partner, Opus Consulting. “Through the receivership, we were able to streamline Ermont’s operations and procedures, negotiate a restructuring of its debts, maintain jobs, and provide uninterrupted service to medical marijuana patients.”

While this is the first cannabis receivership transaction to be approved by the Massachusetts CCC, and the first cannabis receivership in New England, others are already underway across the U.S.
“Because marijuana remains a Schedule I substance under the US Controlled Substances Act, the doors to the federal bankruptcy courts are closed to businesses engaged in the cultivation, manufacturing, sale, or distribution of cannabis,” said John Morrier, partner, Casner & Edwards, LLP, counsel to Opus Consulting. “Receivership is an alternative state-court process available to struggling cannabis businesses and creditors that allows the business to continue while the receiver restructures its operations and finances.”

MariMed continues to operate Ermont’s cultivation and medical dispensary operations in Quincy, Massachusetts, and anticipates rebranding the facility as Panacea Wellness. The transaction includes a Host Community Agreement with the city of Quincy to conduct adult-use cannabis sales, which MariMed anticipates commencing upon regulatory approval.

In advance of its appointment as Ermont’s receiver, Opus Consulting president Jacques Santucci, consultants Nick Des Lauriers and Jasmine Proctor, and analyst Garrett Krisko received the CCC’s first designations as Preapproved Court Appointees, authorizing them to operate Massachusetts cannabis licenses under court supervision. Opus Consulting Partners is represented by John Morrier and Michael Fencer of Casner & Edwards, LLP in the receivership. MariMed, Inc. is represented by Erica Rice and Kevin Conroy of Foley Hoag LLP. Burns & Levinson LLP partners Frank Segall and Scott Moskol represent Ermont’s senior secured creditor, Teneo Funds SPVi, LLC.

“As the cannabis industry matures, more operators will need assistance from experienced turnaround professionals who know the intricacies of the cannabis industry to chart a path out of insolvency,” added Connor Yost, partner, Opus Consulting. “But this type of solution isn’t just for cannabis businesses. We’re also seeing an uptick in need for turnaround services in industries including breweries, hospitality, and others not ready – or not permitted – to pursue bankruptcy. ”

“Our team at Opus has been involved in the cannabis industry as operators and consultants for more than 10 years, and in the turnaround field for even longer,” added Santucci. “It’s especially rewarding when, as with Ermont and MariMed, we can help businesses solve problems, keep doors open to clients, and keep people employed.”

About Opus Consulting

Opus Consulting is a business performance advisory firm that helps businesses and executive leadership teams transform, innovate, and accelerate their operations, creating solutions to empower businesses. Launched in 2009 by founder Jacques Santucci, Opus has grown to provide strategic management and turnaround services to clients facing operational challenges and uncertainty across the U.S. With deep understanding of clients in regulatorily complex industries such as cannabis and alcoholic beverages, hospitality, food and beverage, agriculture, energy, and with North American Indian Tribes, Opus management consultants leverage their networks and experience in uncertain environments to help businesses and executive leadership teams thrive. Learn more at opuscg.com.

Opus Consulting Contact

Beth Waterfall
T: 508-221-8412
E: [email protected]