Debra BorchardtIn addition to the East West Bank not seeing any money from Irwin Naturals (OTC: IWINF) and its Founder Klee Irwin, it seems the owners of Serenity Health Clinics were also left empty-handed. They are suing Irwin Naturals and Klee Irwin in Illinois as agreed upon in the acquisition documents.
Psychedelic expansion
Irwin Naturals announced in 2022 that it agreed to buy the Kentucky-based Serenity for $11 million from Juan C. Afable and Beth Ann Nevius. The owners of Serenity were both Florida residents and the clinics provided mental health and pain treatments. The acquisition was part of a binge the supplement company embarked on as it decided to expand into the ketamine clinic business.
The agreement stated that $3 million was due at closing, a Promissory Note in the principal amount of $11 million, and a Security Agreement to secure the obligations under the Promissory Note were signed. The first payment of $1 million was due May 23, 2023, and the Serenity owners say they never received any money from Irwin.
They are asking the court to award them $11 million, together with pre and post-default interest, late fees, and post-judgment interest, to award costs and attorneys’ fees. There hasn’t been much movement in the case since 2023. The parties could not reach a settlement and the Irwin parties requested the conflict go to arbitration. While the Serenity owners noted that their agreements don’t acknowledge arbitration as a solution, they agreed to stay the proceedings until the outcome of the arbitration. There have been no updates in the case since December 2023.
Get in line
The Serenity owners may have a hard time collecting as Green Market Report recently wrote that the company’s lender East West Bank (NASDAQ: EWBC) was also suing for non-payment of a loan. East West Bank accused Irwin Naturals (OTC: IWINF) and its founder, Klee Irwin, of defaulting on a $40 loan.
In a complaint filed on June 16, EWB said the company and founder violated the terms of the loan agreement and diverted money meant for the company for personal use, such as landscaping at his Hawaiian property and car payments. The bank also took over the company and removed Irwin from the board of directors.
The company last filed financial results in November 2023 when it reported its third-quarter earnings. At the time, Green Market Report wrote that the company was struggling to achieve profitability, despite selling off underperforming ketamine clinics while still developing its international cannabis industry footprint. The company reported losses and declining revenue at the time.
Irwincase
