Securities division orders medical marijuana company to pay back Missouri investors

Medical Marijuana

Secretary of State Jay Ashcroft’s Securities Division issued a consent order against Green Clinic, LLC, after selling unregistered, non-exempt securities to Missouri residents. Green Clinic was established in response to the November 2018 Missouri constitutional amendment creating the Missouri Medical Marijuana Program.  

From November 2018 to November 2019, Green Clinic sold $520,000 of unregistered securities in the form of investment contracts to Missouri investors in the Kansas City and Poplar Bluff areas, as well as out-of-state residents.

While receiving investor monies, Green Clinic opened and operated eight clinics. During this period, significant operational, competitive and financial difficulties were encountered. They eventually closed all locations. As a result of the failed venture, investors sustained significant losses.      

Green Clinic consented to Missouri Securities Commissioner David Minnick’s findings and agreed to reimburse a portion of the investors’ losses and pay a civil penalty of $15,000. The civil penalty will ultimately be waived by Minnick if the company principal complies with the restitution payment schedule. 

“Fledgling businesses, like those permitted by the Missouri Medical Marijuana Program, can be high-risk ventures, and investors can lose everything they invest,” said Minnick. “Before writing the check, check out the company and the people seeking your hard-earned money.” 

Secretary Ashcroft continues to urge Missouri investors to call the toll-free investor protection hotline at 800-721-7996 or go online to Missouri Protects Investors website for more information or to file a complaint.