Cannabis
Media Report: California Cannabis Growers Destroyed Own Operation, Undermined Loan, Lawsuit Claims
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The agreement with Roots Properties required 90% of the firms’ profits to be used to pay off the loan.
California industrial agriculture firm and investor Roots Properties has filed suit in Los Angeles Superior Court against a pair of cannabis companies that it said undermined a six-figure loan agreement through “intentional sabotage” of their own grow operation, from which 90% of the profits were supposed to go to Roots.
According to the lawsuit, Island View Ranch LLC and Island Breeze Farms LLC struck an investment deal with Roots Properties for $400,000 in loans and another $350,000 line of credit, from which it took out $262,192 of the funds, Law360 reported.
The money was intended to fund a cannabis greenhouse operation that did business as Bay X. Under the terms of the deal, Roots would get most of the profits, with only 10% going to the Island entities.
But, the suit alleged, owner James Mesa – who reportedly died prior to the lawsuit’s filing and is not a defendant – organized deliberate sabotage of the greenhouse grow.
California Cannabis Growers Destroyed Own Operation, Undermined Loan, Lawsuit Claims
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Sean Hocking
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