Cannabis group critic Snoop Dogg halves stake: Gavin Sathianathan reduces stake in Oxford Cannabinoid Technologies from 8.1% to 4.4%
Lawyer: Rap artist Snoop Dogg – real name Calvin Broadus Jr
A fierce critic of a medical cannabis group backed by rapper Snoop Dogg has lowered his stakes after losing to a bitter boardroom brawl.
Gavin Sathianathan has nearly halved his stake in Oxford Cannabinoid Technologies (OCT) from 8.1 percent to 4.4 percent, stock market filings show.
It comes several months after Sathianathan, who co-founded the company, unsuccessfully tried to fire the CEO, chairman and several non-executive directors. This included his co-founder Neil Mahapatra, OCT’s largest shareholder.
The company, which also counts tobacco giant Imperial Brands among its investors, uses cannabis extracts to develop a range of pain-relieving products.
OCT is one of many companies to receive backing from Casa Verde, a venture capital fund co-founded by rap artist Snoop Dogg – real name Calvin Broadus Jr – who is an outspoken advocate for legalizing cannabis use in the US.
Headquartered in Oxford, OCT was valued at £48 million last year when it went public in London. It’s now worth just £5.3 million.
Sathianathan accused the board of being “obstructive” in the face of “ongoing and worsening value destruction” and wanted to address what he described as “serious governance and sclerotic management issues.”
He has lowered his stake before OCT will start its first clinical trial in January.