In a dramatic turn of events, Beacon North LLC, a prominent cannabis advisory firm, has reached a settlement in a lawsuit accusing dispensary operator Silverpeak Holdings LLC of engaging in covert investor courting practices. Court documents filed in Denver District Court unveil the resolution, bringing an end to the legal showdown.
Pot Firms Settle Suit Claiming Backdoor Funding Deals : Beacon North’s Swift Exit
Beacon North made its strategic move, filing a notice of dismissal early this month, followed by a stipulation of dismissal submitted to the court on Jan. 12. The cannabis advisory firm had previously asserted that it entered into an agreement with Colorado-based Silverpeak, aiming to connect the dispensary operator with potential investors to fuel its business expansion.
Pot Firms Settle Suit Claiming Backdoor Funding Deals : Demanding Damages
The lawsuit sought a substantial $300,000, alleging that commissions tied to a financing round secured by Silverpeak were owed, and without Beacon North’s referral, such funding would have been unattainable. Additionally, a staggering $1 million was claimed for an alleged violation of a nondisclosure deal both parties had previously inked.
Silverpeak’s Binding Commitments
As part of the settlement, Silverpeak agreed to refrain from independently contacting any entity introduced by Beacon North for a minimum of two years. Violating this nondisclosure agreement would trigger a hefty $1 million penalty for Silverpeak. Moreover, the dispensary chain committed to paying a 2% commission on all funds received as a result of Beacon North’s referrals, payable within 30 days of receipt.
Pot Firms Settle Suit Claiming Backdoor Funding Deals : Betrayal Unveiled
The lawsuit revealed a narrative of betrayal, alleging that after a deal struck in November 2019, Silverpeak surreptitiously initiated direct communications with entities introduced by Beacon North, in violation of the nondisclosure agreement. Behind Beacon North’s back, Silverpeak engaged with Charles Andros, the founding partner of Bay Point Capital, leading to a clandestine $9 million loan in January 2021. Shockingly, at the outset of 2023, Beacon North uncovered another undisclosed financing agreement between Bay Point Capital and Silverpeak, this time for a staggering $15 million.
The Demand and Refusal
In the aftermath of these revelations, Beacon North issued demands to Silverpeak for its rightfully earned commission. However, Silverpeak staunchly refused to comply with the payment request. Representatives for both parties were unavailable for immediate comment, adding an air of mystery to the unfolding saga.
Legal Representation
Beacon North is legally represented by Henry M. Baskerville from Fortis Law Partners LLC, while Silverpeak has Stephen E. Csajaghy of Condit Csajaghy Bugos Gray LLC in its corner.
