The landlord of medical cannabis company Vireo Health is suing the company because they say the company owes $1.5 million in rent because they signed a 10-year industrial lease for about 32,000 square feet in Puerto Rico but then quit a few months later, not paying the rent for several years. The case was brought to federal court.
According to the deal, Vireo had to start paying more than $17,000 a month in rent 60 days after getting its marijuana license. The owner says Vireo didn’t pay anything after the first two months, even though they were asked to pay many times.
Vireo Health is a medical cannabis company that does business in several states, including New York, where it has had trouble getting licenses because of strict rules and high fees. The company has also been in trouble with the law in other states, like Minnesota, where it was accused of crossing state lines with medical weed.
The lawsuit against Vireo Health comes at a time when investors and officials are paying more attention to the cannabis business. A lot of businesses in the industry have had a hard time making money because of high taxes and rules, and some have even been accused of scams.
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Vireo Health hasn’t said anything about the case yet, but the business has had money problems in the past. Due to the COVID-19 pandemic’s effect on the economy, the company changed its deal with a subsidiary of IIP, Inc. in 2020 to cover temporary base rent and property costs.
We don’t know how the lawsuit against Vireo Health will turn out yet, but it shows how hard it is for businesses in the cannabis market. Businesses will need to be able to deal with complicated rules and keep good relationships with their landlords and other important people in the industry as it continues to grow and change.