Why is teh Anson Fund associated with such cannabis winners as Emerald Health, Zenabis, Hexo and Medmen - and why are all THOSE companies related to Tilray?
Side Payoffs from MedMen – Defrauding Anson Funds Unitholders
Moez Kassam has a penchant for bragging about how much money he has made outsmarting everyone. Our sources insist that he personally (not Anson Funds) made a fortune on side payments from the Medmen deal, though there have reportedly been many others. This represents a defrauding of Anson Fund’s own unitholders.
There is a good explanation here of what happened with Medmen and Anson, but our sources provided additional color: MedMen founder Adam Bierman was short of money on their raise, prompting him to seek help from Kassam who offered, on behalf of Anson Funds, a backstop order of around $20 million. In return, Kassam demanded a huge chunk of stock in a side deal paid to both him personally and the fund. That deal worked out well for both Moez Kassam and Adam Bierman who had hit the street with Anson’s $20 million backstop. By using Anson’s name and Medmen’s new fully-funded status, the money came rolling in—as much as $150 million.
The best thing for Anson, according to Kassam, is that the fund did not have to put up all the money that Kassam committed to because so many more orders came in, off the back of this order. And the side payoff was another major benefit, which was not disclosed. That leaves yet another path for DOJ investigators to follow.