State’s first cannabis grower Theraplant sold

NewCo buys firm following foreclosure proceedings

One of the state’s four active cannabis producers has new ownership following foreclosure proceedings, according to a filing with the Securities and Exchange Commission.

The new owners of Theraplant is a company called NewCo, which is a subsidiary of East Hampton N.Y.-based DXR Holdco, according to a report filed on July 21 with the SEC.

Theraplant was owned by the Greenrose Holding Company, which bought the cannabis producer in 2021. The foreclosure agreement wipes $4,107,400 of debt off the books and puts Theraplant into NewCo’s hands, according to the filing.

Greenrose will maintain an additional $5 million in debt, which will be satisfied following completion of the foreclosure agreement. Bernard Wang, named CFO of Greenrose in 2022, will exit the company per the agreement.

According to a report by Bloomberg Law, Greenrose investors have filed a lawsuit against the company’s board and its largest creditors, Silver Point Capital LP, to stop the foreclosure.

Neither Greenrose nor Theraplant replied to requests for comment.

Theraplant is one of four cannabis producers currently in operation in Connecticut, the first to legally cultivate medical cannabis.

“In September 2014, we were the first producer to release cannabis onto the Connecticut market,” according to the company’s website.

“Cannabis establishments are required to notify and receive approval from the department prior to any change in ownership which includes the addition, removal or replacement of backers,” said Kaitlyn Krasselt, spokesperson for the state Department of Consumer Protection. “Any new backers associated with the ownership change must register with the department and undergo a background check.”

Krasselt said the foreclosure and change in ownership should not affect supply. Theraplant products are sold in 18 recreational and hybrid dispensaries across Connecticut.

“The change did not impact their operations and they are continuing to supply the market without incident,” she said.

“Maintaining appropriate market supply, particularly for medical patients, remains a priority for the department and once notified of a proposed change in ownership the department reviews the transaction for any supply impacts and works with licensees to ensure adequate supply.”

Brian A. Pounds/Hearst Connecticut Media file photo Ethan Ruby, of Watertown, president of Theraplant, listens in 2014 as his company was announced as one of four state-selected medical marijuana growers.