Everest and R.Greenleaf Owner Schwazze Default Sparks Concerns for Sunland Park Dispensaries Serving El Paso Area
A recent loan default by cannabis operator Schwazze is raising red flags for the future of Everest and R.Greenleaf in Sunland Park, New Mexico—a vital destination for El Paso-area residents seeking legal cannabis access.
Financial Turmoil: Schwazze Misses Key Debt Payment
Earlier this month, Schwazze—a Denver-based multistate cannabis operator and parent company of R. Greenleaf and Everest Cannabis Co.—missed a $700,000 payment on a $127 million debt agreement, triggering a formal default with its secured lender, CRB Credit Fund.
The March 3 missed payment comes just months after a December 2023 debt restructuring, which had been intended to provide financial relief amid tightening capital conditions across the cannabis industry. In response, CRB seized $1.5 million from Schwazze’s accounts, further destabilizing the company’s cash flow and casting doubt on its ability to maintain operations across its retail network.
Borderland Locations in Focus: R. Greenleaf & Everest in Sunland Park
The default carries direct implications for the Borderland cannabis economy, particularly for two high-traffic dispensaries in Sunland Park—one operated by R. Greenleaf and the other by Everest Cannabis Co.
These stores serve as primary access points for El Pasoans crossing into New Mexico for recreational cannabis, offering legal, regulated alternatives not available in Texas. Their strategic location just minutes from downtown El Paso has made them a cornerstone of cannabis tourism in the region.
Now, with Schwazze’s financial future uncertain, concerns are growing that these dispensaries could face:
- Staffing cuts
- Reduced inventory and restocking delays
- Operational slowdowns or even closures
“There’s been no official word yet, but everyone’s watching. We know what these stores mean to people on this side of the border,” said one local employee, speaking anonymously.
How Schwazze Got Here: A Case of Aggressive Expansion
Originally founded as Medicine Man Technologies in 2014, Schwazze rebranded in 2020 and aggressively shifted from consulting to full-scale cannabis operations. The company rapidly expanded its footprint in Colorado and New Mexico through a series of acquisitions:
- 2021: Acquired R. Greenleaf, gaining cultivation and retail infrastructure in New Mexico.
- 2023: Acquired Everest Cannabis Co., further expanding its retail reach with 14 new dispensaries.
The strategy aimed to position Schwazze as a vertically integrated multistate operator, managing everything from seed to sale. But with that growth came heavy borrowing, including debt with a 15.25% interest rate due in 2026.
The March default is the first major signal that Schwazze may have overextended itself in pursuit of market dominance.
Impact on El Paso–Sunland Park Cannabis Access
With Texas continuing to ban recreational cannabis, dispensaries in Sunland Park play a critical role in providing legal access for El Paso consumers. Any disruption in service at these locations could:
- Limit product availability for Texas-based customers
- Reduce convenience for cross-border shoppers
- Increase demand at competing dispensaries in the area
While operations currently continue as usual, the uncertainty surrounding Schwazze’s finances has prompted increased scrutiny from both consumers and industry watchers.
For many El Pasoans, R. Greenleaf and Everest are more than dispensaries—they are part of a routine and trusted system for safe, legal cannabis just over the state line.
Industry Outlook: A Warning for the Region
Although Schwazze has not filed for bankruptcy, the missed payment places it under heightened financial pressure. The company is also contending with other liabilities, including a $525,000 wage-theft settlement in late 2024.
Analysts say further restructuring, asset sales, or downsizing could be on the horizon. Should that happen, the Sunland Park dispensaries could become assets on the chopping block, either to be sold or shuttered as part of a broader cost-cutting effort.
The situation serves as a reminder that even in fast-growing cannabis markets like New Mexico, financial missteps by parent companies can ripple through local communities and across state lines.
As cannabis tourism continues to drive revenue in border towns like Sunland Park, the stability of corporate operators like Schwazze will be essential to preserving access, affordability, and product consistency for the broader Borderland community.
EP Cannabis Club Will Continue to Monitor This Story
The fallout from Schwazze’s default could shape regional cannabis access for months to come. EP Cannabis Club will provide updates on:
- Operational changes at R. Greenleaf and Everest dispensaries
- Potential ownership transfers or closures
- Consumer impact in Sunland Park and greater El Paso
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