Tech Pioneer James Clark Revives Eaze with $10M Investment

LOS ANGELES- James Clark, a tech industry veteran known for transformative ventures like Netscape, has turned his attention to the cannabis sector with a bold acquisition. In August, his firm FoundersJT LLC purchased the assets of Eaze Technologies, a leading cannabis delivery company, for $54 million, just weeks before Eaze had planned to shutter its operations. This acquisition, paired with a fresh $10 million Series B funding round, marks an unexpected revival of Eaze, which now plans to reopen 70 locations, including 57 retail stores, across four states.

Eaze has been grappling with market turbulence in recent months, especially within its subsidiary Green Dragon, which announced layoffs and planned closures in Florida and Colorado by year-end. Additionally, Eaze had recently announced it would cease operations in California and Michigan, laying off approximately 500 employees, citing “ongoing challenges of the California cannabis market,” according to CEO Cory Azzalino. Clark’s involvement signals a potential strategic shift that could reshape Eaze’s future, although Tuesday’s announcement left unanswered whether the company would reverse any of these previously announced layoffs or closures.

Clark’s expertise in scaling and restructuring technology-driven enterprises might be what Eaze needs to navigate cannabis industry challenges, which are exacerbated by complex regulations and a competitive market landscape. His career trajectory, marked by roles in pioneering companies, provides insight into his ability to pivot and adapt across sectors. Clark began as a professor and co-founded Silicon Graphics, Inc. (SGI), which revolutionized computer graphics and visualization. His most famous venture, Netscape, was the first major web browser and catalyzed the dot-com boom after its 1995 IPO, changing the face of the internet. Following Netscape, Clark co-founded WebMD, bringing the healthcare industry online, and later diversified his investments to cover biotechnology, fintech, and media.

Eaze’s acquisition has not come without controversy. Andrew Levine, a former owner of Green Dragon, filed a lawsuit against Eaze on the day of the auction, alleging that Clark and shareholder Thomas Jermoluk plotted to acquire Eaze’s assets below market value. In response, Eaze labeled Levine a “serial litigator” and accused him of improperly accessing company records. This dispute follows Eaze’s acquisition of Green Dragon in 2021, a deal that once positioned the company near a billion-dollar valuation.

Now, Clark’s leadership could bring a much-needed overhaul, aiming to boost Eaze’s Florida production capacity, develop new region-specific products, and launch innovative marketing campaigns centered on scheduled delivery. As part of its comeback, Eaze announced plans to hire over 1,000 new employees across California, Colorado, Florida, and Michigan, strengthening brand partnerships and integrating technological efficiencies Clark has been known to leverage in his ventures. With Clark at the helm, Eaze may well redefine cannabis delivery, blending Clark’s tech-driven approach with the evolving demands of the cannabis market.