MJ Biz reports
Stiiizy, one of the top-selling marijuana brands in California with operations in several other states, told MJBizDaily it has no connection to illegal business practices detailed in a lawsuit and a published report that prompted some operators to cut business ties with the company.
However, Stiiizy appears to be distancing itself from co-founder Tony Huang, the subject of growing allegations of illegal business dealings in California.
Stiiizy dominates market share in California in vape sales and is the largest retail operator in the state.
Its national footprint includes operations in Illinois, Michigan and Nevada as well as distribution at more than 1,400 retail outlets.
In an exclusive interview with MJBizDaily, Stiiizy President Tak Sato said Huang has not held a formal position within the company for years, though he still serves in an advisory role.
In a follow-up inquiry by MJBizDaily, the company said Huang exited Stiiizy’s executive team in December 2020.
The company declined to provide any financial details related to Huang’s exit.
Sato also told MJBizDaily in a phone interview that the vertically integrated cannabis company has not engaged in or benefited from any illegal business activities in California.
The denials were in response to a recent Los Angeles Times story alleging that Huang leased several buildings to unlicensed retailers in and around L.A. and helped funnel Stiiizy products through illicit retail channels while serving as a top executive for the company.
“I don’t want to minimize the allegations, but they are from many, many years ago,” Sato told MJBizDaily.
“They have absolutely zero connection to Stiiizy and have zero effect on Stiiizy’s fully legal and confined activities.”
Weedweek recently reported that former Stiiizy CEO Jon Avidor filed a lawsuit in September contending Huang and other co-founders ran a criminal enterprise of at least 18 unlicensed marijuana stores in the L.A. area.
Sato denied to Weedweek any connection between the allegations involving Huang and Stiiizy’s licensed operations.
“He is no longer an owner, employee or director of the company,” Sato confirmed to MJBizDaily.
Source https://mjbizdaily.com/stiiizy-president-denies-allegations-of-illicit-marijuana-operations-sales/
