Reported by: Nina Zdinjak

Russian billionaire and a former owner of the Chelsea Football Club, which plays in the English Premier League, Roman Abramovich, has been secretly investing in cannabis companies for years.

According to leaked documents, sourced and shared by Forensic News, a Russian oligarch known for his close ties to Russian leader Vladimir Putin has helped fund the two biggest shareholders of multi-state cannabis operator Curaleaf Holdings (OTCQX:CURLF).

With a market cap of around $3.08 billion, the Wakefield, Massachusetts-headquartered company is considered one of the largest marijuana businesses in the world. Per the report, its shareholders were secretly funded by Abramovich, whose net worth is estimated at around $9 billion.

When the war started, Curaleaf was targeted over its possible connections to Russia. Its executive chairman Boris Jordan took the top spot for his Russian and Ukrainian descent. Jordan, who is a U.S.-born American citizen, was accused of having financial ties to Russian companies and oligarchs.

Contrary to Jordan’s claims that “Curaleaf is an American success story” funded by him, the leaked documents reveal that Abramovich was silently investing in Jordan and companies under his control through a British Virgin Islands LLC, Cetus Investments.

“Tens of millions of dollars in loans were issued to Jordan and his companies, something that appears to have never been disclosed by Jordan or Curaleaf. Some of the loans included stipulations that the money was only to be spent on purchasing shares in Curaleaf, previously known as PalliaTech Inc,” writes Forensic News. 

For example, back in December 2016, a Delaware-based company owned by Jordan, Lafayette LLC, got a $14 million investment from Abramovich’s Cetus Investment Limited. The promissory note made clear that the fund must be spent to buy 878,569 shares of stock in PalliaTech. Then, in October 2017, the note was amended to include a second loan for $10 million, for the purpose of acquiring extra 418,253 shares of PalliaTech. 

The report notes that in total, Abramovich had lent around $69 million in 2017 and 2019 to Jordan’s companies.

What’s more, Jordan was not the only Curaleaf shareholder to be backed by loans from Abramovich’s offshore company. Its second-biggest shareholder, Andrey Blokh, was also financed by Abramovich in a similar scheme, according to the record.

Read full report: https://www.benzinga.com/amp/content/30204144