Mark Messier Suing Pot Company CEO for Squandering $500K Investment

Mark Messier is suing Ed Moroz, the CEO of the Canada marijuana company Destiny Bioscience, for half a million dollars. Messier alleges that Moroz personally guaranteed him that this would be a risk-free investment. In addition to investing the money, Messier was apparently a “goodwill ambassador” for the firm, which helped them raise $30 million in additional money.

Most of the details, which are shared below in a Twitter thread by Canadian journalist Rick Westhead, are relatively straightforward in terms of how celebrity investments and endorsements can take a wrong turn. What is wild about it is that cannabis is such a booming industry that losing tens of million dollars — the company was put in receivership with $42 million in debt — is mind boggling.

Here is the thread with the pertinent details:

According to Messier’s claim, he is one of the greatest hockey players in history, former NY Rangers captain, 6X Stanley Cup winner, and among “the most famous celebrities in New York."
"His investment & endorsement would therefore give Destiny and Moroz instant credibility…”

— Rick Westhead (@rwesthead) December 15, 2020

While Destiny’s other investors may have taken their chances, Messier says he was given a personal guarantee he wouldn't lose money after his holding company Mar-Lyon USA Inc. bought 400K shares of Destiny for $1.25 apiece.

— Rick Westhead (@rwesthead) December 15, 2020

Messier alleged Moroz agreed to give him a personal guarantee and pay Messier the difference between $750K and the value of 200K Destiny shares on Dec. 31, 2019.
[Meaning if value of Destiny shares fell to 0$, Messier would presumably have been paid $750K.)

— Rick Westhead (@rwesthead) December 15, 2020

Destiny was placed in receivership in May 2020 with $42M in debt.
Its assets, including organics and cannabis cultivation buildings in Nisku and Leduc, AB, are now up for sale.https://t.co/Rjd81hMZea

— Rick Westhead (@rwesthead) December 15, 2020

Still hard to reckon with losing that much money when marijuana stock valuations are skyrocketing. It’s almost like losing double.