Debra Borchardt
Cannabis lender Bespoke Financial is suing California-based In Da Cut LLC, CEO Drayten Howell and DOES 1-10 for not paying back the money that was borrowed.
According to the court complaint filed on January 11, 2023, in February 2022, Bespoke loaned money to In Da Cut so that In Da Cut could pay third-party vendors for goods and services that had been purchased. In Da Cut was supposed to repay any loaned money plus any accrued interest or fees. The maximum amount they could borrow was $400,000. As of December 29, 2022, Bespoke said that In Da Cut owes them $369,518.59 and that In Da Cut has not provided Bespoke with financial statements for the months of October 2022 and November 2022 constituting an additional event of default in the Loan Agreement.
The amount owed to Bespoke is $369,518.59 and is comprised of (a) $273,268.09 in principal, (b) accrued and unpaid interest of not less than $42,771.14, (c) late fees of not less than $13,479.36, and (d) early termination fees of $40,000.00.
Some of the bills that In Da Cut owed were to familiar names in the industry including Nabis, Herbl, Wyld, Ironworks Collective and River Distributing to name a few. There were some 26 invoices that Bespoke lent money to In Da Cut to pay, but then never got repaid.
Bespoke said it has attempted for over two months to reach an agreement on a repayment plan acceptable to both parties. On October 11, 2022, The company said that Howell, on behalf of In Da Cut, promised it would repay all outstanding obligations by the end of November 2022. Then, on October 24, 2022, Bespoke said that Howell, changed its tune and instead offered a payment plan and the parties reached an agreement in principle on repayment terms. After that, it seems In Da Cut ghosted Bespoke and never made any of the offered payments.
The company website states that Indacut currently services the entire Central Coast of CA from San Luis Obispo County to Santa Barbara County. “A service area spanning across 130+ miles down the coast of California. God, hard work, and a killer team made all of this possible.”
The website also says that Drayten plans on expanding his cannabis ventures around the state/worldwide, and is currently working to become the Youngest MSO in Cannabis. “With his flagship Michigan store launching in the near future that goal is nearing. Drayten is also striving to become vertically integrated in California as well. As he is in the middle of build-outs for 2 more delivery hubs. As well as a 15k sqft Mega Store which will serve as the Central Coast’s Premier Cannabis Outlet!”
Cannabis companies in California have increasingly found themselves in dire straits and unable to pay debts as prices have plunged and the illicit market is thriving.
