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CCB approves transfer of six dispensary licenses to Arboritum Investments despite lab creditor's warning
Summary
The Cannabis Compliance Board approved TOI 250043, allowing Air Wellness to transfer six dispensary licenses to a subsidiary of Arboritum Investments LLC. 374 Labs warned the transfer could prejudice outstanding creditor claims tied to AYR/Air Wellness; applicant representatives said the retail transfer does not affect the cultivation/production licenses at issue.
The Cannabis Compliance Board on March 19 approved Transfer of Interest request 250043 allowing Air Wellness, Inc. to transfer six dispensary licenses to a Nevada subsidiary of Arboritum Investments LLC. Board staff recommended approval and the board granted the request and a temporary waiver related to minor transfer thresholds, with the waiver set to expire at the next agenda date.
Before the vote, Jason Stroll, owner of 374 Labs, spoke during public comment to urge postponement of the transfer. Stroll said his company is litigating unpaid invoices against AYR (Second Judicial District case CV26-00245) and asked the board to delay the TOI or require that sale proceeds be held in escrow until creditor claims are resolved. "Should this transaction proceed before our lab's claims are resolved, [the purchaser] may become involved in related claims," Stroll said, asking the board to protect known creditors or preserve sale proceedings through an appropriate court-approved mechanism.
Alicia Ashcraft, representing the applicants, responded that the matter before the board was a retail transfer and, as presented, did not transfer cultivation or production assets tied to the lab claims. Ashcraft said the litigation was recent and unresolved, and that she believed answers had not been filed yet. She urged the board to consider the narrow scope of the TOI: "what's before you today is a transfer of interest in the retail stores only," she said.
Board members discussed the creditor concerns but moved to approve the TOI. Chair Major General Barry and members expressed concurrence with staff recommendations; the motion passed by voice vote. The board also approved a limited waiver of NCCR requirements for small transfers, with conditions that the waiver expire at the next agenda date.
The public commenter had also argued AYR (referred to in public comment as AWire/Ayr in filings) may be involved in bankruptcy proceedings in the Supreme Court of British Columbia. The transcript indicates that litigation and creditor claims remain unresolved at the time of the board vote; the board did not impose escrow or other hold conditions beyond the limited waiver described above.
The board recorded the action at its March 19 meeting; the transfer was approved and the matter will appear on future agendas as required by CCB rules if further filings or related motions arise.
