happy nye

I don’t know about you, but when I look at patterns and strategies, I like to compare every move whether by a company or a law firm to the greats or the well-known ones who’ve tried the same maneuvers. Doesn’t everyone? Isn’t it the best way to see how things might turn out?

Remember great companies like:
Theranos? They issued buyouts during fraud allegations. How’d that end? Shutdowns and criminal convictions.
Nikola Corporation? Lowball buyouts while under scrutiny. What happened? Fines, fraud convictions, and stock in free fall.
WeWork? Buyouts during valuation scandals. Where’d that go? Leadership ousted and a valuation implosion.

Is nuEra Cannabis following this playbook? Are they looking at these companies for guidance? Does every great executive team, lawyer, and owner rely on case law and case studies like these to guide their success? Well, here’s a laugh to end your year with a bang because it seems like they might be trying to.

Remember my posts about fraudulent conveyance, fraudulent valuations, and my filings with the SEC and other regulators? In my opinion, nuEra decided to cap off 2024 with yet another head-scratching move.

Did you know we’re still in court with nuEra for fraud, breach of contract, and other matters? Did someone at Latimer LeVay Fyock LLC think it was a good idea to issue a demand buyout letter while the lawsuit is still ongoing? Do you think that’s a sound decision based on case law?

Naturally, we rejected the offer and requested financials, taxes, and documentation to figure out what the equity is actually worth. Why? Because they still haven’t provided those documents after nearly six months of non-compliance with discovery requests.

After ignoring our rejection and transparency request, what did they do? They sent a check anyway for $100.

Are they seriously claiming two cultivation centers harvesting millions annually are worth just $300? How does that math check out? Did you know they’re in DuPage County Court with Paisley Trees for millions in product about these same assets we filed a fraudulent conveyance report with the SEC on? Proof of bad faith?

So, are these cultivation centers worth $300, or are they worth millions? Is it possible to argue both at the same time? Should someone point out the contradiction?

And do they even realize that being in receipt of something through fraudulent conveyance could fall under SEC scrutiny? Isn’t that a risk worth considering?

If nuEra thinks two cultivation centers are worth $300, what does that say about how they value investments? Partnerships? Contracts? Collateral for loans?

And seriously, if this is their strategy, what does it say about their law firm’s judgment? Are they trying to win the case or set a new record for bad decisions?

But hey, what do I know?
I’m just sitting here with the receipts, shaking my head.

You know I’m going to talk about this on F'nAround in the Morning with James! Check it out soon at FnAround.com

Happy New Year