California receiver auctions off assets from distributor Herbl for $1.4M

Herbl’s technology platform, Athena, is still for sale for $75,000.

A California court-appointed receiver in charge of liquidating assets from the now-defunct distributor Herbl successfully sold off some of the company’s holdings for $1.4 million, after the company had a fantastic flame-out last year before going under.

WeCann, the California firm handling the auctioning of Herbl’s assets, told MJBizDaily that it sold off two major assets from Herbl – Nevada distributor Blackbird, which was purchased by Nabis for $850,000, and its accounts-receivables claims were sold to a private investor for $600,000.

Still left on the auction block is Herbl’s technology platform, Athena, which is priced to sell at $75,000, despite an original valuation of $500,000, MJBizDaily reported.

Herbl’s distribution license, which WeCann could sell, won’t even be put up for sale because the firm couldn’t attract any bidders, even with a discounted advertised price of just $25,000. The original asking price was $100,000.

Beverly Hills law firm Ervin Cohen & Jessup also purchased a package of Herbl’s active legal disputes from WeCann for an undisclosed sum, MJBizDaily reported.

The $850,000 price for Blackbird is noteworthy given that the distributor has been sold multiple times since 2019, first for $50 million to multistate operator Tilt Holdings Inc. (Cboe: TILT) (OTCQX: TLLTF), then sold again in 2020 for $15 million, before it was re-sold in 2021 to Herbl for an undisclosed amount.

The auctions mean the Herbl saga is nearing an end; the company reportedly owed retailers and brands in California upwards of $7 million in its accounts-receivables claims when the distributor went belly-up, but its total debt owed is more like $10 million, MJBizDaily reported.

It’s unclear how much of that debt may actually get repaid, given that much lower sale receipts and attempts to collect on debts have been ongoing for months in California.

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