Aeon Botanika Receivership

Douglas Wilson Companies Vice President Ryan Baker was appointed as receiver to oversee the completion of construction, stabilization of assets and license sale for Aeon Botanika, a high-end cannabis consumption lounge in West Hollywood, California, after Aeon Botanika defaulted on its loan.

The operator, which had rights to city licenses and had acquired California state licenses to operate a cannabis business including retail consumption, had a loan secured by property at 8448 Santa Monica Blvd. in West Hollywood with licenses tied to the location.

DWC oversaw construction completion in order to receive the needed Certificate of Occupancy enabling the business to operate. With construction permits set to expire around the beginning of the assignment, DWC worked under a very restricted timeline in order to work with the city on renewing permits and then complete work on the project.

The team then had to renew the state cannabis license and find a buyer for the cannabis consumption lounge and all licenses. DWC engaged a broker to vet candidates under a shortened timeline and deadline for opening set by the City of West Hollywood. The team also navigated the complex process of selling the cannabis licenses, which required a buyer who met a set of standards set by the city, including similar industry and cannabis dispensary operations experience.

As receiver, DWC facilitated the funding for the purchase of the license, including an auction-like process to accept offers and select a buyer. The firm also completed an application to the Business License Commission of West Hollywood, ensuring city standards were met. DWC also renegotiated the lease for the new owner.