Green Dragon, a prominent cannabis company in Colorado, is shutting down its operations. The company plans to lay off all 59 workers at its 92,000-square-foot grow facility in Denver by the end of the year. Additionally, all 17 retail locations in Colorado will close, as well as its 400,000-square-foot medical marijuana grow operation in Florida and 39 dispensaries in the state.
The company’s parent company, Eaze, a California-based cannabis delivery firm, acquired Green Dragon roughly three years ago. However, Green Dragon’s co-founders, Lisa Leder, Andrew Levine, and Alex Levine, sued Eaze for fraud, alleging that the company misrepresented its finances in the lead-up to the sale and wrongfully fired them in February 2023. The case was later dismissed.
The closure of Green Dragon’s operations is attributed to the company’s new ownership group, which includes billionaire Jim Clark, the founder of Netscape. Clark’s company, FoundersJT, loaned Green Dragon $36.9 million in 2022, and the new ownership group is said to be in a wait-and-see mode, with the outcome of the upcoming election in Florida, which could legalize recreational marijuana, playing a significant role in their plans.
Green Dragon’s Denver grow facility has recently changed hands, with a new landlord, Don Ball, purchasing the building for $11.5 million. Ball is not too concerned about the impending closure, as Green Dragon is locked into an “ironclad” lease. The company’s lease will expire in January 2031, and rent increases by 1.5 to 3 percent each year.
The closure of Green Dragon’s operations is a significant blow to the cannabis industry in Colorado, which has seen a number of companies shut down in recent years. The company’s fate is a reminder of the challenges and uncertainties facing the industry, particularly in the face of ongoing regulatory issues and market fluctuations.
