A publicly traded cannabis company has failed to live up to the terms of two loans totaling $300,000 following its partial acquisition of another firm that had originally taken on the loans, a Los Angeles County lawsuit contends. OG Article: here
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has made only a small dent on the debt it owes them after taking over the loans, which were originally extended to Natural Plant Extract of California Inc. Under profit-sharing terms of both loan agreements, Huang and Pai were to receive 10% of net profit. The two outstanding loans were confirmed by Arman Tabatabaei, president of Natural Plant Extract, in late February 2022, according to the lawsuit, filed Wednesday in Los Angeles County Superior Court. But by that time, defendant Cannabis Global Inc. had already acquired a 37.6% ownership interest and, according to the lawsuit, assumed the two Natural Plant Extract outstanding loans owed to the plaintiffs.