The third-largest dispensary chain in Oregon, Chalice’s request for court protection signals deep trouble. It hopes to find a buyer.

One of the largest cannabis companies in Oregon, Chalice Brands, is in deep trouble.

Chalice, a Canadian holding company whose assets are all in Oregon and which operates 15 dispensaries in the state, asked Multnomah County Circuit Court today to place five of its subsidiary companies under the control of a receiver. The May 23 filing reveals a dire financial situation: Chalice’s Oregon subsidiaries are insolvent, owe more more than $35 million to the parent company and are unable, according to court filings, to pay their obligations.

“This situation has led to an urgent liquidity crisis for the defendants. They are unable to pay key suppliers and have recently failed to make payments to creditors, including lenders, landlords, suppliers, and others,” the filing reads, adding that such inability to pay rent is leading to landlords threatening to seize rented property from Chalice dispensaries.

The plaintiff in the filing is Chalice Brands, the publicly-traded parent company based in Toronto. The defendants in the case are five Oregon subsidiaries. The parent company now is seeking a buyer for all of its assets.

Chalice has also requested in Canadian court that it be granted a stay in order to create a plan to rearrange its assets and keep its creditors from taking legal action against the company. [Read More @ Willamette Week]