CANNAREGS FOUNDER SUED FOR “SECURITIES FRAUD”
Two former executives with software company CannaRegs have sued CannaRegs, its founder Amanda Ostrowitz and the marketing tech company Fyllo which acquired it. The case alleges “securities fraud.” Read the lawsuit here.
New Cannabis Ventures
The suit alleges that in September 2019, Ostrowitz approached the plaintiffs to sell 12% of CannaRegs for $179,000, to investors Panther Opportunity Fund and Phyto Partners. The price implied a company valuation of $1.52M. The sale closed and four months later, Fyllo acquired CannaRegs for $10M in cash and stock.
- Neither Ostrowitz, Panther, Fyllo nor Phyto had a comment.
(Disclosure: WeedWeek recently approached Panther Opportunity Fund about an investment. They declined.)
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