That poor suit coat button.
$138M??
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ohio jones
- Posts: 2356
- Joined: Sat Sep 14, 2024 6:03 pm
- Affiliation: Rosedale Network
Re: $138M??
They did.
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the-real-steve
- Posts: 661
- Joined: Mon Sep 16, 2024 4:32 pm
- Location: Pennsylvania
- Affiliation: Banned.... almost
Re: $138M??
From today's Lancaster Online (behind paywall):
https://lancasteronline.com/news/local/ ... d4610.html
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Before Daryl Heller’s ATM network crashed down around him, the Lancaster County entrepreneur invested in a recreational marijuana business operating in Michigan and Massachusetts.
Now that Heller faces lawsuits and the possibility of federal criminal charges, a bank that financed the cannabis venture says it is owed millions, and has facilitated a court-appointed receiver to take over the company.
The legal action targets one of the largest marijuana companies in Michigan: Glorious Cannabis, which also owns retailer Choice Laboratories. In February Crain’s Detroit Business reported that Heller has a 20% stake in Glorious Cannabis Co. and a 20% stake in Choice Labs.
Massachusetts-based Needham Bank sued 15 legal entities related to the cannabis business in February in a Michigan circuit court. In the filing, the bank states that it is owed $51 million in unpaid loans, and Heller is the “guarantor,” which means that he is responsible for repaying them if the company defaults.
“Heller has recently become the target of multiple lawsuits and investigations in various jurisdictions alleging breaches of contract, fraud, and financial misconduct with respect to his other businesses,” the lawsuit states.
As payments to ATM network investors were ending, Daryl Heller gave $630,000 to children
As payments to ATM network investors were ending, Daryl Heller gave $630,000 to children
Just before and right after Daryl Heller stopped the monthly payments due to investors in hi…
In the filing, the bank said it is worried about the ability of the business to pay, and is “concerned that the full extent of Guarantor’s misdeeds is yet to come to light — and these legal proceedings themselves constitute Events of Default.”
In 2023, Glorious Cannabis Co. sought additional funding from Needham bank to acquire Jackson, Michigan-based Choice Labs, the document states. This move, the company claimed, would “create the largest cannabis company in Michigan by revenue.”
The bank loaned Glorious Cannabis $45 million in October 2023 for its operations in Michigan, the document states. The bank also loaned $10 million in Massachusetts.
According to the legal complaint, the business stopped paying its loans. On Jan. 6, the bank gave Heller a notice of default.
Receivership
Maine-based consultant Jacques Santucci is the court-appointed receiver for Glorious Cannabis. Santucci runs Opus Consulting, which he says has helped cannabis companies thrive throughout the ebbs and flows of the industry over the past 10 years.
“The cannabis industry is kind of, more or less, becoming a commodity,” Santucci said. “Just like any other industry, you get (businesses) that are thriving, and others are struggling.”
Because marijuana remains illegal on the federal level, Santucci said, companies that grow or sell it can’t file for federal bankruptcy protections if they encounter financial trouble.
Instead, the companies turn to state regulations such as receivership, which helps them reorganize.
“Although we manage the company, we still report to the court, and it’s to the benefit of the secured stakeholders,” Santucci said. “So for me, it’s always successful when the secured stakeholder gets something back. And then we stabilize the company, and then at the end, try to save jobs.”
Glorious Cannabis and Choice Labs employ as many as 1,500 people, according to Linkedin.
Daryl Heller asks bankruptcy court to let him sell New Jersey beach house
Daryl Heller asks bankruptcy court to let him sell New Jersey beach house
Eyed by feds, hounded by creditors and embroiled in bankruptcy, Daryl Heller is looking to s…
Santucci said that in Michigan and Massachusetts, Glorious Cannabis is a well-known brand and seen as a good company. In terms of sales, Choice Labs is the second largest marijuana retailer in Michigan, and the sixth largest in Massachusetts, according to Headset, a cannabis industry data platform.
The full extent of Heller’s involvement is unclear. He declined comment for this story. Choice Labs CEO Wesley Lutz didn’t respond to requests, and executives at Glorious Cannabis could not be reached.
In Michigan, the company grew the marijuana in a facility in Jackson County, about an hour west of Detroit, while at another location, it was processed into gummies and edibles popular in the state’s recreational marijuana market. Another growing and processing operation took place in Uxbridge, Massachusetts, about an hour southwest of Boston.
But when it came to many of the businesses’ legal entities, they were listed to Heller’s office on 415 N. Prince St., Lancaster city — the same office that more than a dozen FBI agents raided in December.
Industry pains
Theodore J. Menadier is a cannabis industry expert based in Colorado who is not involved in this lawsuit.
Menadier emphasized that many cannabis companies are struggling right now. In states where recreational marijuana was made legal, there is typically a gold rush of startups seeking to cash in.
As a result, many states have oversaturated markets, leaving competitors stuck running unprofitable businesses and unable to discharge them in bankruptcy due to cannabis’ federal status as an illegal, schedule I controlled substance.
“If that changes, there would be a massive amount of businesses that would declare bankruptcy, in places like California and Oregon,” Menadier said.
He said that receivership has become a common approach for businesses that are having financial problems, or which have an issue with one of the owners. “A cannabis business wouldn’t go into receivership unless there are significant issues,” Menadier said. “And it basically is an alternative to bankruptcy.”
It’s just one entity tied to Heller that is facing financial issues. In February, Heller’s Blackford ATM Ventures was forced into Chapter 7 bankruptcy in Delaware by one creditor trying to settle a $28.5 million debt. Heller has also filed for personal Chapter 11 bankruptcy in New Jersey, where he’s majority owner of a $6.5 million beachfront home.
Though Heller has had his share of defaulted loans, the root of the financial issues with Glorious Cannabis is unclear.
Menadier said it’s possible Heller just wanted to get in on what seemed like a great business opportunity. “People get really excited when cannabis gets legalized.”
Sholtis's work is funded by the Lancaster County Local Journalism Fund. For more information, or to make a contribution, please visit lanc.news/supportlocaljournalism.
https://lancasteronline.com/news/local/ ... d4610.html
***************************************
Before Daryl Heller’s ATM network crashed down around him, the Lancaster County entrepreneur invested in a recreational marijuana business operating in Michigan and Massachusetts.
Now that Heller faces lawsuits and the possibility of federal criminal charges, a bank that financed the cannabis venture says it is owed millions, and has facilitated a court-appointed receiver to take over the company.
The legal action targets one of the largest marijuana companies in Michigan: Glorious Cannabis, which also owns retailer Choice Laboratories. In February Crain’s Detroit Business reported that Heller has a 20% stake in Glorious Cannabis Co. and a 20% stake in Choice Labs.
Massachusetts-based Needham Bank sued 15 legal entities related to the cannabis business in February in a Michigan circuit court. In the filing, the bank states that it is owed $51 million in unpaid loans, and Heller is the “guarantor,” which means that he is responsible for repaying them if the company defaults.
“Heller has recently become the target of multiple lawsuits and investigations in various jurisdictions alleging breaches of contract, fraud, and financial misconduct with respect to his other businesses,” the lawsuit states.
As payments to ATM network investors were ending, Daryl Heller gave $630,000 to children
As payments to ATM network investors were ending, Daryl Heller gave $630,000 to children
Just before and right after Daryl Heller stopped the monthly payments due to investors in hi…
In the filing, the bank said it is worried about the ability of the business to pay, and is “concerned that the full extent of Guarantor’s misdeeds is yet to come to light — and these legal proceedings themselves constitute Events of Default.”
In 2023, Glorious Cannabis Co. sought additional funding from Needham bank to acquire Jackson, Michigan-based Choice Labs, the document states. This move, the company claimed, would “create the largest cannabis company in Michigan by revenue.”
The bank loaned Glorious Cannabis $45 million in October 2023 for its operations in Michigan, the document states. The bank also loaned $10 million in Massachusetts.
According to the legal complaint, the business stopped paying its loans. On Jan. 6, the bank gave Heller a notice of default.
Receivership
Maine-based consultant Jacques Santucci is the court-appointed receiver for Glorious Cannabis. Santucci runs Opus Consulting, which he says has helped cannabis companies thrive throughout the ebbs and flows of the industry over the past 10 years.
“The cannabis industry is kind of, more or less, becoming a commodity,” Santucci said. “Just like any other industry, you get (businesses) that are thriving, and others are struggling.”
Because marijuana remains illegal on the federal level, Santucci said, companies that grow or sell it can’t file for federal bankruptcy protections if they encounter financial trouble.
Instead, the companies turn to state regulations such as receivership, which helps them reorganize.
“Although we manage the company, we still report to the court, and it’s to the benefit of the secured stakeholders,” Santucci said. “So for me, it’s always successful when the secured stakeholder gets something back. And then we stabilize the company, and then at the end, try to save jobs.”
Glorious Cannabis and Choice Labs employ as many as 1,500 people, according to Linkedin.
Daryl Heller asks bankruptcy court to let him sell New Jersey beach house
Daryl Heller asks bankruptcy court to let him sell New Jersey beach house
Eyed by feds, hounded by creditors and embroiled in bankruptcy, Daryl Heller is looking to s…
Santucci said that in Michigan and Massachusetts, Glorious Cannabis is a well-known brand and seen as a good company. In terms of sales, Choice Labs is the second largest marijuana retailer in Michigan, and the sixth largest in Massachusetts, according to Headset, a cannabis industry data platform.
The full extent of Heller’s involvement is unclear. He declined comment for this story. Choice Labs CEO Wesley Lutz didn’t respond to requests, and executives at Glorious Cannabis could not be reached.
In Michigan, the company grew the marijuana in a facility in Jackson County, about an hour west of Detroit, while at another location, it was processed into gummies and edibles popular in the state’s recreational marijuana market. Another growing and processing operation took place in Uxbridge, Massachusetts, about an hour southwest of Boston.
But when it came to many of the businesses’ legal entities, they were listed to Heller’s office on 415 N. Prince St., Lancaster city — the same office that more than a dozen FBI agents raided in December.
Industry pains
Theodore J. Menadier is a cannabis industry expert based in Colorado who is not involved in this lawsuit.
Menadier emphasized that many cannabis companies are struggling right now. In states where recreational marijuana was made legal, there is typically a gold rush of startups seeking to cash in.
As a result, many states have oversaturated markets, leaving competitors stuck running unprofitable businesses and unable to discharge them in bankruptcy due to cannabis’ federal status as an illegal, schedule I controlled substance.
“If that changes, there would be a massive amount of businesses that would declare bankruptcy, in places like California and Oregon,” Menadier said.
He said that receivership has become a common approach for businesses that are having financial problems, or which have an issue with one of the owners. “A cannabis business wouldn’t go into receivership unless there are significant issues,” Menadier said. “And it basically is an alternative to bankruptcy.”
It’s just one entity tied to Heller that is facing financial issues. In February, Heller’s Blackford ATM Ventures was forced into Chapter 7 bankruptcy in Delaware by one creditor trying to settle a $28.5 million debt. Heller has also filed for personal Chapter 11 bankruptcy in New Jersey, where he’s majority owner of a $6.5 million beachfront home.
Though Heller has had his share of defaulted loans, the root of the financial issues with Glorious Cannabis is unclear.
Menadier said it’s possible Heller just wanted to get in on what seemed like a great business opportunity. “People get really excited when cannabis gets legalized.”
Sholtis's work is funded by the Lancaster County Local Journalism Fund. For more information, or to make a contribution, please visit lanc.news/supportlocaljournalism.
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Formerly know as steve-in-kville
Hippie Anabaptist, husband, father & grandfather (recently!)
Semi-professional philosopher & poet.
Hippie Anabaptist, husband, father & grandfather (recently!)
Semi-professional philosopher & poet.
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ken_sylvania
- Posts: 2259
- Joined: Sat Sep 14, 2024 5:41 pm
- Affiliation: Mennonite
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the-real-steve
- Posts: 661
- Joined: Mon Sep 16, 2024 4:32 pm
- Location: Pennsylvania
- Affiliation: Banned.... almost
Re: $138M??
I read something this morning about the reporter who is doing all the leg work on this. They estimate this could become a nearly $600M thing.
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Formerly know as steve-in-kville
Hippie Anabaptist, husband, father & grandfather (recently!)
Semi-professional philosopher & poet.
Hippie Anabaptist, husband, father & grandfather (recently!)
Semi-professional philosopher & poet.
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Ken
- Posts: 21863
- Joined: Thu Jun 13, 2019 12:02 am
- Location: Washington State
- Affiliation: former MCUSA
Re: $138M??
Here in the Pacific Northwest where pot is legal (in both OR and WA) it turns out that the cannabis business is not all that was advertised. Growers and distributers are going bankrupt all over the place.
It turns out that cannabis is super easy to grow in enormous quantities. But not so easy to sell and market to the public once you've captured the 5% or so of the population who are heavy users. So those hundred million dollar greenhouse grow operations? Not so easy to make a profit off of after all. Especially when state and federal law prevents any of it from going out-of-state.
Especially when you are still competing with illegal grow operations that are not restricted by any regulations obviously.
It turns out that cannabis is super easy to grow in enormous quantities. But not so easy to sell and market to the public once you've captured the 5% or so of the population who are heavy users. So those hundred million dollar greenhouse grow operations? Not so easy to make a profit off of after all. Especially when state and federal law prevents any of it from going out-of-state.
Especially when you are still competing with illegal grow operations that are not restricted by any regulations obviously.
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A fool can throw out more questions than a wise man can answer. -RZehr
Re: $138M??
It turns out most weed users already had a dealer they preferred. Versus “legal” marijuana:
- Lower prices, no sales taxes
- No need to show ID to buy
- 24/7 Delivery
- Other drugs also available regardless of legality
- “Flexible” payment arrangements
- Credit available - no credit card needed.
- Lower prices, no sales taxes
- No need to show ID to buy
- 24/7 Delivery
- Other drugs also available regardless of legality
- “Flexible” payment arrangements
- Credit available - no credit card needed.
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Ken
- Posts: 21863
- Joined: Thu Jun 13, 2019 12:02 am
- Location: Washington State
- Affiliation: former MCUSA
Re: $138M??
And if you are an illegal grower in say Oregon and you have a big surplus. You can load it in a truck and haul it to Texas where it is illegal and worth much more. If you are a legal grower in OR and you have a surplus it is just going to rot.JohnH wrote: ↑Fri Mar 07, 2025 5:43 pm It turns out most weed users already had a dealer they preferred. Versus “legal” marijuana:
- Lower prices, no sales taxes
- No need to show ID to buy
- 24/7 Delivery
- Other drugs also available regardless of legality
- “Flexible” payment arrangements
- Credit available - no credit card needed.
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A fool can throw out more questions than a wise man can answer. -RZehr
Re: $138M??
I have a relative that was growing it in Oregon illegally. Then Oregon legalized it, so he went legal. Then the market was flooded, so he sent it to be sold illegally in Chicago.Ken wrote: ↑Fri Mar 07, 2025 7:18 pmAnd if you are an illegal grower in say Oregon and you have a big surplus. You can load it in a truck and haul it to Texas where it is illegal and worth much more. If you are a legal grower in OR and you have a surplus it is just going to rot.JohnH wrote: ↑Fri Mar 07, 2025 5:43 pm It turns out most weed users already had a dealer they preferred. Versus “legal” marijuana:
- Lower prices, no sales taxes
- No need to show ID to buy
- 24/7 Delivery
- Other drugs also available regardless of legality
- “Flexible” payment arrangements
- Credit available - no credit card needed.
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