Bloom Farms Archives - Green Market Report

Debra BorchardtNovember 22, 2021


California-based cannabis company Bloom Farms has won its case with its former investor Jeff Menashe and his investment firm DG BF LLC, according to a report on Law360. Menashe had claimed that he was led to invest $5 million into the company, but that he was given bad information. After Menashe failed to produce documents to support his claim, the judge ultimately dismissed the case. It was originally set to go to trial in September.

Zurn wrote, “Plaintiffs’ failure to answer written discovery substantially weakened that claim, as they declined to identify any omissions or misrepresentations in written discovery and so were precluded from offering any at trial.”

He went on to add, “While Defendants have generously characterized this state of affairs as “a Menashe problem,” I believe his counsel’s approach of prioritizing bluster over substance has compounded the problem. It is clear that no sanction short of dismissal has been or would be meaningful.”

At one point, Bloom Farms was unable to complete any financing for the company as the case was proceeding, but eventually, the Delaware Vice Chancellor Morgan T. Zurn allowed Bloom to resume financing efforts.

American General Resources or AGR is the formal name of the company. It had requested about $2.2 million or at minimum approximately $600,000 based on the fee-shifting orders the court already issued in the case. Zurn said in the court documents that the fees are now shifted to the plaintiffs.

Investor Delays

Menashe and his firm were asked to produce documents supporting the claims by certain dates so that the case could proceed. They were also supposed to provide records from cell phones and laptops. According to the court documents, Menashe’s lawyers said repeatedly that those laptops had been wiped and donated, but eventually, the laptops were found and given to Plaintiffs’ counsel. Menashe also claimed he didn’t send any business texts, but Bloom Farms was able to produce texts that undermined that claim. Various delay tactics were employed by suggested staffing problems at the lawyers office to not having a company in the small Montana town that could search the phone.

The article said that Eric Boustani, general counsel for Bloom Farms, told Law360 that Friday’s order is the kind of decision that restores a lot of his faith in the legal process. “The tactics which were deployed against the company were so wildly out of compliance with appropriate procedure that to do anything other than dismiss this case would have rewarded it,” Boustani said to Law360.

Bloom Farms is a small privately-owned California-based cannabis company. It is mostly known for its vape pens and also its philanthropy. For every product sold, Bloom Farms donates a meal to someone in need. The company has given over 3,000 meals since 2015.



Debra BorchardtFebruary 3, 2018


As more investment vehicles make social responsibility a key requirement, it will not be enough for cannabis companies to claim the plant alone makes a company socially responsible. Bloom Farms has made this a part of its company mission.

The company just hit a milestone delivering its one-millionth healthy meal to California’s nonprofit food banks. For every Bloom Farm product sold, this California cannabis company donates money to food banks across the state to cover the cost of sourcing and distributing a healthy meal.

“From the start, we wanted to build a business that contributed to the communities we live and work on in many levels,” said CEO Michael Ray. “Donating our one-millionth meal shows that we’re succeeding for our customers who have purchased one million of our products and appreciate that we are working toward the greater good, and for California’s most vulnerable families who have received the gift of nutritious food.”

BlackRock investment firm recently stated that it was now going to require that companies must engage in some form of social responsibility in order for those companies to receive investment money. While some cannabis companies stepped up to help in the California wildfire many don’t have it as a part of their mission. Denver-based Organa Brands is also very socially active and set up its own charitable arm with employees volunteering their time.

“Partnering with Bloom Farms has made all the difference for World Harvest LA and its clients,” said Glen Curado, CEO of World Harvest LA Food Bank. “They not only contribute financially, but their staff volunteers with us as often as they can. It’s an amazing company with extraordinary staff.”

In addition to the one-for-one program, Bloom Farms gives employees four hours of paid volunteer time every month to use as they choose.Last year, Bloom Farms was recognized as one of the Top 100 corporate philanthropists in the San Francisco Bay area placing them alongside Google, eBay, Microsoft and PayPal to name a few.

“Bloom Farms is a different kind of cannabis company, and our customers know that when they choose our products,” said Keith J Hart, Bloom Farms Social Good Manager. “Our company’s visions is to change the conversation around cannabis and one of the core values is to give something amazing back; our food bank partnership allows us to do both and we are excited to hare this milestone with them.”

Debra BorchardtDecember 15, 2017


In the latest Green Market Report Executive Spotlight, meet Bloom Farms, Sally Nichols.

Sally Nichols started as an investor in California cannabis company Bloom Farms and ended up as the company President of distribution. Her classic Ralph Lauren look draws the inevitable comparison to Mary Louise Parker from the television show Weeds, but unlike the character, Nichols is strictly legal business.

“I’ve invested in several other cannabis companies, but with Bloom Farms I really fell in love, not just with the brand, but more importantly the people managing and building the company,” said Nichols. “The relationship slowly evolved until they asked me to come and build out distribution and sales with them.”

The Nichols, the family behind K-Swiss, sold the company in 2012. Sally and her husband then moved to New York from California and made numerous investments in cannabis. “I had been in medical and healthcare startups before and then I just gravitated towards cannabis. After living in California, I wasn’t unfamiliar with the industry.”

She chuckles that she’s the least likely person you would think is flying back and forth between Westchester New York, building, selling and distributing marijuana products. She said for the first couple of years, she kept it quiet, but now she’s very open about it.

Nichols believes that brands win. She describes Bloom Farms cannabis as a clean, fresh product. “We’re basically a lifestyle brand that is focused on bringing relief, relaxation, and creativity to people’s lives versus the highest high in the world.” She compared Bloom Farms to the soft drink Coca-Cola, which started as a medicine and ended up becoming one of the most popular beverages in the world.

Bloom sources its cannabis from sustainable California farms for its vape, pre-rolled flower products and oil pods for PAX vape products. The company supports local small farms and uses that as the source for its single origins line of products.

“It’s really our belief that cannabis as an agricultural product has the ability to be transformative for local, for agricultural communities and urban communities alike. It is also a socially responsible company. With every purchase, the company provides a meal to someone in need. It also works against the negative stigma of cannabis. “It’s shocking how many people that work in farming can’t afford to feed themselves,” she said. The products are consumer friendly with suggestions like ‘daytime friendly’ or ‘nighttime friendly.’

“I’m amazed every day that this is the fork I chose to take in the road,” said Nichols. “At this point in my life, I’m a suburban mom living in New York who is working in the California and Colorado weed business.”

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