Executives of Toronto-based marijuana multistate operator Slang Worldwide allegedly hid their financial challenges when negotiating to acquire a Vermont-based cannabis operation, according to a lawsuit.
Shayne Lynn, former owner of vertically integrated High Fidelity, claims in the August suit that Peter Miller, Slang’s co-founder and ex-board chair; Christopher Driessen, a former CEO; and the company are guilty of fraud and negligent misrepresentation, Vermont alternative weekly Seven Days reported.
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Slang bought High Fidelity, the parent company of cannabis retailer CeresMed, in a stock-and-cash merger valued at $17.25 million in June 2021 – just before the state launched its adult-use market.
According to the lawsuit, Slang allegedly failed to disclose the Canada-headquartered company was badly in need of cash to continue and that the acquisition would help secure a loan.
Lynn said in the filing that he learned about that situation after the merger closed, and, under
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