Founder and CEO Fawn Weaver Testifies Under Oath; Receiver’s Counsel Declines Cross-Examination
(Court Hearing Transcript – February 9, 2026)
Founder and CEO of Uncle Nearest, Fawn Weaver, testified under oath and directly addressed the financial assertions raised in the Receiver’s affidavit.
The Receiver’s counsel did not cross-examine her testimony.
$7.5 Million Paid in Q2 2025 and $16 Million Paid During Alleged 18-Month “Default”
Ms. Weaver testified that Uncle Nearest paid $7.5 million to Farm Credit in early Q2 2025, three months prior to the filing of the bank’s lawsuit.
She further testified that approximately $16 million was paid to Farm Credit during the 18-month period the lender characterized in their original lawsuit filing as being in “default” (January 2024 through July 2025 filing).
Those payments occurred during the same timeframe later described by the lender as sustained nonperformance.
Her testimony placed substantial principal and interest payments on the record during the alleged default period, including significant payments made immediately prior to litigation.
Advanced Spirits Balance Tied to $21 Million in Barrels Previously Alleged to Be “Missing”
During cross-examination, counsel asked whether she disputed that Advanced Spirits has a debt.
Ms. Weaver responded that Advanced Spirits’ debt is directly related to the $21 million in barrels previously described as missing, and that if the debt is due, then those barrels have necessarily been located.
She clarified that the balance corresponds to approximately 25,000 barrels under that agreement.
Earlier testimony confirmed that if the balance were paid, the company would receive those barrels.
Her testimony highlighted that the same $21 million in barrels cannot simultaneously be characterized as missing assets while also serving as the basis for a debt obligation.
$20 Million From Personal Shares Reinvested Solely Into Uncle Nearest
Ms. Weaver testified that $20 million was raised through the sale of her personal shares and structured as a convertible note at her request.
She testified that the shares involved were her personal shares and that 100 percent of the $20 million was transferred into Uncle Nearest.
She explained that the structure prevented the company from having to fund approximately $9.5 million in immediate capital gains taxes and that the note was designed to convert to equity in 2030.
She further testified that the proceeds were not retained for personal use and that her holding company, Grant Sidney, functioned only as a transactional pass-through in connection with the share sale.
She testified that the receivership triggered default mechanics on a convertible note that was intended to convert to equity in 2030, not operate as traditional debt.
Approximately 40 Percent Year-Over-Year Case Sales Growth Prior to Receivership
Ms. Weaver testified that Uncle Nearest continued to grow prior to receivership and outperformed broader bourbon market softness.
Park Street case-sales data presented in the hearing reflected approximately 40 percent year-over-year growth from 2023 to 2024.
Nielsen data showed that through mid-2025, Uncle Nearest outpaced the broader American whiskey market at retail.
The decline in Nielsen performance occurred after the receivership began.
No Vendor Lawsuits Existed Before Receivership
Ms. Weaver testified that no vendor lawsuits were pending when receivership was imposed, that payment arrangements had been negotiated, and that vendors were working with the company.
She testified that subsequent creditor actions arose after control was removed from management and payments were halted during receivership.
Chapter 11 Rejected to Prevent Wiping Out Shareholders
Ms. Weaver testified that she did not pursue Chapter 11 because advisors warned that the cap table would be wiped out and shareholders would likely go to zero.
She testified that every person who recommended Chapter 11 advised that the cap table would be eliminated and that every person who invested would go to zero. She stated she was unwilling to pursue a restructuring that eliminated shareholder equity.
Cash Flow Reports Reflected Positive Results Throughout Receivership Using the Receiver’s Own 13-Week Cash Flow Reports He Has Never Filed With the Court
Ms. Weaver testified that every cash flow report she received through December 10 showed positive cash flow.
She testified that after that date, she was informed she would need to sign a nondisclosure agreement and agree not to file the reports with the Court in order to continue receiving them.
She further testified that the document relied upon by the bank as a negative 13-week forecast was a template format, not the actual forecast, and that the actual forecast admitted into evidence reflected positive performance during that timeframe.
Revenue Trajectory and Founder-Led Marketing Central to Enterprise Value
Ms. Weaver testified that spirits brands are valued based on revenue trajectory and that founder-led marketing is a key differentiator for Uncle Nearest.
She testified that the brand historically outperformed broader market trends and that marketing reductions during peak OND season coincided with post-receivership retail decline.
She testified that if control were restored, she believes retail performance would respond quickly.
No Documentary Evidence Introduced to Contradict Her Financial Clarifications
During her testimony, no additional documentary evidence was introduced to contradict the financial clarifications she provided.
The Court took the matter under submission.