This spring, rumors were swirling that HERBL, one of California’s largest cannabis distribution companies, was on the verge of collapse. So Mike Beaudry, the company’s CEO, sent out an email on May 18 declaring that “these rumors are categorically not true. HERBL continues to be fully operational.” Less than a month later, HERBL had completely collapsed. HERBL’s failure left a trail of damage that hurt small pot brands and shorted the state some $17 million in unpaid taxes. HERBL is only the latest high-flying California pot startup to crumble, following companies like Flow Kana, which raised $175 million in capital...
