California’s biggest cannabis delivery company faces foreclosure

California’s largest pot delivery service is in financial trouble after it defaulted on a major loan and now faces foreclosure, according to a document filed in Delaware court earlier this month.

Eaze, which was founded in San Francisco in 2014 and was once valued at over $700 million, has defaulted on a loan issued by legendary tech investor Jim Clark. Clark is now foreclosing on the company and demanding all collateral owned by Eaze, according to the court filing, which was first reported by WeedWeek.

It’s the latest move in an ownership battle that’s been playing out in court for nearly a year. Clark has been an investor in Eaze and has sat on its board of directors since at least 2021. In August 2022, a shell company co-owned by him issued a controversial $36.9 million loan to Eaze that gave Clark the right 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.

Those other investors alleged in their lawsuit that Clark had illegally misrepresented the company’s financial status to attract more investment in the company. That lawsuit was dismissed by a San Francisco judge in November 2023. [Read More @ SF Gate]