The CEO of Sol Global Investments, Andy Defrancesco, and his ex-wife Catherine Defrancesco, have been named as defendants in a conspiracy scheme involving the stock of a hot cannabis IPO, Verano, that went public this month. The lawsuit involves half a billion dollars that Canadian hedge fund MMCap has asked the Ontario court to help take possession of because of contractual rights they hold on the stock of Verano. The Defrancescos’ is named in the lawsuit because in 2019 they signed personal guarantees to back a $50 million loan issued by 1235 fund lp, an affiliate of MMCap, issued to cash-strapped Sol Global Investments. The lawsuit filed this week also details how Andy Defrancesco was warned in writing that Sol Global was filing misleading financial reports intended for the investing public with a Canadian securities exchange as far back as November 2020.

Cannabis Law Report, 02/26/2021 23:22:00

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