A longtime Southern California marijuana entrepreneur and government filed swimsuit towards Toronto-based Captor Capital – a former monetary companion of MedMen Enterprises – for fraud, breach of contract and other misdeeds and is in search of at the least $2.eight million in damages.

Matt Longo, a founding father of hashish dispensaries in Santa Ana and West Hollywood which have operated below the MedMen model title, filed his swimsuit towards Captor in Los Angeles County Superior Court on July 2, alleging that Captor pulled a “bait and switch” on him by promising firm inventory and wages that weren’t delivered.

Rather, Longo’s swimsuit contends, he was pressured out of all firm positions with Captor subsidiaries between 2019 and 2020 with out being paid what he was owed.

The swimsuit contends that Longo is owed, partially, a portion of the $31 million sale in 2019 of ICH California Holdings, a Captor subsidiary that owned the 2 retailers in Santa Ana and West Hollywood.

Longo’s swimsuit additionally claims that Captor defrauded him in an acquisition deal for one other firm he based, Mellow Extracts, through which he was promised 3.75 million shares of inventory in I-5 Cannabis Holdings, certainly one of many Captor subsidiaries.

The shares have been speculated to be value 1.5 million Canadian {dollars} ($1.1 million), however the swimsuit alleges that Longo acquired solely $525,000 value of inventory in Captor Capital.

Captor didn’t reply instantly to a Marijuana Business Daily request for remark. A spokesperson for Los Angeles-based MedMen declined to remark.

Captor Capital trades on the Canadian Securities Exchange below the ticker image CPTR and on over-the-counter markets below the image CPTRF.

MedMen shares commerce below the ticker image MMEN on the Canadian Securities Exchange and as MMNFF on the U.S. over-the-counter markets.

– John Schroyer

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