The former owners of Green Dragon, a cannabis company operating in Colorado and Florida, allege in a lawsuit that California-based Eaze defrauded investors, is “close to insolvency” and is operating unlawfully.
Cory Azzalino, the CEO of Eaze, told SFGate the company is “in a healthy financial position” and is operating lawfully.
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The lawsuit was first reported by WeedWeek.
Eaze, a privately held online marijuana marketplace and delivery service with operations in California and Michigan, acquired Green Dragon in 2021 for undisclosed terms.
According to SFGate, the former Green Dragon owners made many allegations in their lawsuit, including:
Eaze’s board intentionally hid its financial condition before the companies’ merger. Eaze is “essentially ‘renting’ multiple cannabis licenses and operating their own business at the licensed premises” in violation of California law. James Henry Clark, the billionaire founder of Netscape, and his business partner Thomas Jermoluk have
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