An Auburn-based company that runs four of the eight medical marijuana dispensaries in Maine fired back at its extraction partner Wednesday by filing a complaint in Cumberland County Superior Court.
Wellness Connection of Maine filed the 33-page civil action seeking an unspecified amount of damages for breach of contract against CanWell, a company that extracts products for edible marijuana and that has operations in Maine.
Wellness Connection, which filed the lawsuit as Northeast Patients Group, claimed that CanWell did not perform extractions up to contract expectations.
For its part, CanWell filed a 51-page “ demand for arbitration” on Aug. 21 naming Wellness Connection, along with its majority investor Acreage Holdings of New York, in a breach of contract dispute. It was filed in Kent County Superior Court in Rhode Island.
CanWell claimed, among other things, that Acreage and Wellness Connection breached a long-standing contract by terminating it July 12. The company said Wellness Connection owes it upward of $650,000 in product royalties and has not paid anything in 2019.
A large part of the disagreement is over CanWell’s yields for extracting THC from marijuana plants.
The CanWell filing said that Wellness Connection CEO Patricia Rosi in January 2019 expressed displeasure with CanWell’s yields. She reportedly said the yields were less than 40 percent. [Read More @ Bangor Daily News]