Flandreau’s pot partner has SEC cautioning “substantial doubt over its ability to continue as a going concern.”

It looks like the Flandreau Santee Sioux Tribes dreams of being a haven for drugs illegal elsewhere in South Dakota might be going up in smoke as their partner in the venture might not be on the most solid financial footing:

…documents filed by Colorado-based Monarch America Inc. with the Securities and Exchange Commission show its auditor has raised “substantial doubt” over its ability to continue as a going concern, with management estimating it needs more than $2.5 million in revenue by the end of March to stay afloat.

Flandreau Santee Sioux President Anthony Reider told The Associated Press that tribal officials knew of Monarch’s financial challenges but chose it because the company was willing to sign a short-term deal and sought a smaller share of profits than other consulting firms.

“Obviously, it raised a red flag,” Reider said of the SEC filings. “But … there are so many people in the industry that would be able to step in and help in the event that they were to close.”

Monarch CEO Eric Hagen said in an interview that efforts to raise the revenue are going “very well,” but wouldn’t elaborate. He downplayed Monarch’s financial challenges, saying the company is “in a good position currently.”

and..

Construction began this week and marijuana cultivation is expected to start in October, with the tribe hoping to have product ready for sale in December.

Read it all here.

2 thoughts on “Flandreau’s pot partner has SEC cautioning “substantial doubt over its ability to continue as a going concern.””

  1. All these promises by this company that they will do it right and set an example for other tribes to use meanwhile it looks like they are throwing a “Hail Mary” pass given the shaky financial ground they are on.

    Then add the Flandreau Santee Sioux Tribe’s promises and we see red flags going up everywhere.

    We can’t forget the constant claims by potheads that marijuana is harmless, just a plant, gift from God, it’s good for you, it’s not addictive, name your problem or malady and they will show you how marijuana can cure anything and drivers that consume marijuana are safer than sober drivers, mixing alcohol with marijuana before driving? No problem!

    The tribe saying that those that use can stay on the reservation till the effects wear off. Oh I’m sure the users will!

    Yep! It looks like this is going to go real well!

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