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Board approves sale of six dispensary licenses despite lab's warning of unpaid debts
Summary
The Cannabis Compliance Board unanimously approved TOI 25-43, transferring six retail licenses from Air Wellness Inc. to a subsidiary of Arboretum Investments LLC, after a lab owner warned the board the sale could prejudice unpaid creditor claims. Applicant counsel said the litigation involves cultivation entities and does not affect the retail licenses before the board.
The Cannabis Compliance Board on March 19 approved a transfer of six adult-use dispensary licenses from Air Wellness Inc. to Arboretum Nevada Permit Co. LLC, a subsidiary of Arboretum Investments LLC, while hearing a public warning from a testing lab that the sale could move assets before creditor claims are resolved.
"Should this transaction proceed before our labs' claims are resolved, it risks allowing valuable regulated assets to be transferred while known creditor claims remain outstanding with no recourse," said Jason Stroll, owner of 374 Labs, during public comment. Stroll told the board his company is in litigation with AYR (Second Judicial District Court Case No. CV 26-00245) over unpaid lab testing invoices and asked the board to postpone TOI 2500043 or require sale proceeds be held in escrow.
Alicia Ashcraft, representing the applicants, told the board she did not expect the public comment and said the contested litigation appears to involve cultivation and production entities rather than the retail stores being transferred. "The entities and licenses that are at issue with the person who made comment will still remain with Air, and that should really have nothing to do with the transfer of interest that's before you today," she said.
Rachel Brenner, who presented the item for staff, said CCB staff had no areas of concern preventing approval and noted the application was submitted under a master purchase agreement addressing Air's inability to meet certain loan repayment terms. The board also approved waiver requests under NCCR 5.112 related to the transfer; the waiver was conditioned to expire on the next agenda date.
Member Berry moved to approve the TOI; Member Roth seconded. The motion passed unanimously. The board did not place additional escrow or creditor-protection conditions on the approved transfer.
Stroll returned to the public-comment period later to urge broader consideration of lab protections, saying labs act as gatekeepers because product must be tested before it moves into the regulated market and that unpaid claims threaten small labs' survival. The board did not change the approved TOI on the record; staff and applicants will proceed as authorized.
The CCB's action records show TOI 25-43 covering entities D110, D090, D017, D050, D051 and RD547 was approved March 19, 2026.
