Bloomberg Law
July 9, 2020, 10:04 PM

Bloom Farms Gets TRO Lifted, Green Light for New Financing Round

Mike Leonard
Mike Leonard
Legal Reporter

Cannabis company Bloom Farms doesn’t have to get permission from a major equity holder to move forward with a new financing round that would subordinate his liquidation preference to new investors, a Delaware judge ruled Thursday, lifting a temporary restraining order.

Although plaintiff Jeff A. Menashe has a high payout preference “within the current equity structure,” the operating agreement “does not expressly grant that position in perpetuity, forever,” Vice Chancellor Morgan T. Zurn wrote, saying it “contemplates a senior issuance.”

The expedited declaratory judgment ruling comes two days after Zurn issued the TRO, modifying a June 26 ...