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CCB approves security interest allowing lenders to take DeepRoots collateral if borrower defaults
Summary
The board approved a security interest making DeepRoots' Nevada licenses collateral under loan documents with East West Bank, Western Alliance Bank and Chicago Atlantic; presenters said lenders would not convert debt to equity and foreclosure would require CCB suitability and license-transfer review.
The Cannabis Compliance Board approved a security interest that places certain DeepRoots Nevada licenses as collateral for debt financing between Vireo Growth (parent company) and lenders including East West Bank, Western Alliance Bank and Chicago Atlantic.
Rachel Branner presented staff analysis and counsel for Vireo (Lori Rogish) explained the agreements: the financing is a traditional debt arrangement without a conversion mechanism to equity, remedies limited to recovery through collateral, and licensees retain operational control unless foreclosure occurs. Rogish said any foreclosure or enforcement action affecting licenses would return to the CCB for suitability and license‑transfer approvals.
Member Merritt disclosed employment with Western Alliance Bank; after consulting counsel she stated she did not feel abstention was necessary because she was not directly involved in the loan operations. The board moved to approve the security interest and the motion carried.
