Eaze—California’s largest cannabis delivery service, once valued at $700 million and backed by Snoop Dogg—now faces foreclosure.
SFGate reports that it follows an ownership battle in court for the once-mighty delivery service that’s dragged on for over a year.
WeedWeek reports that the company defaulted on a loan issued by tech investor Jim Clark. Clark, who founded Netscape, among other entities, invested in Eaze and took over a role on the company’s board of directors since 2021. In August 2022, a shell company co-owned by him issued a $36.9 million loan to Eaze that gave Clark power to seize control of Eaze if it failed to meet monthly revenue requirements laid out by Clark’s company, according to a 2023 lawsuit filed by other Eaze investors.
Clark currently is foreclosing on the company and demanding all collateral owned by Eaze, according to the court filing. Cory Azzalino, Eaze’s CEO, told SFGate that the foreclosure is the result of a dispute among the company’s investors. The investors believed they could be losing their equity rights to the company.
In another lawsuit, Clark allegedly misrepresented the company’s financial status to attract more investment in the company, but that lawsuit was dismissed by a San Francisco judge in November 2023.
But Azzalino clarified that the foreclosure would not affect the company’s immediate operations and said Eaze is still in a “healthy financial position.”
San Francisco-based Eaze launched in 2014 by Keith McCarty to deliver medical cannabis to patients across California. But two years later, as the company grew, McCarty stepped down from his position as CEO. Several spinoff companies launched such as EazeMD, a service that helps people get a recommendation for medical cannabis from a doctor, and Eaze Insights, a research company. Eaze Wellness, on the other hand, provides products …
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Author: Benjamin M. Adams / High Times
