It had an app, it rang up more than 48,000 Facebook “likes,” and it had a vision: WeedHire was to be the “Monster.com of Marijuana,” the virtual employment agency for the legal cannabis industry, the Wall Street Journal reported yesterday. On New Year’s Eve, however, WeedHire revealed that it had turned to a Florida firm for help paying the bills. Turnaround Strategies now controls WeedHire’s assets, and is tasked with making the most of them to take care of creditors the company can’t pay, according to papers filed in Delaware’s Court of Chancery. An assignment for the benefit of creditors is a form of state court-supervised bankruptcy, and WeedHire is a Delaware corporation. It is also publicly traded, although not much. In its most recent report to the Securities and Exchange Commission, for the quarter ended March 2015, the company lamented the lack of an active trading market for its stock. WeedHire also reported doubts about its ability to continue as a going concern, with debts hovering around the $2 million mark, and sales slipping. Read more. (Subscription required.)
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For more on the assignment for the benefit of creditors, be sure to pick up a copy of ABI’s General Assignments for the Benefit of Creditors: The ABCs of ABCs, Third Edition.
