skip to Main Content
Acreage Holdings versus CanWell Battle For New England Revenue Pie Heats Up

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]

 

This Post Has 0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Stories

Kentucky’s Medical Cannabis Program Undergoes Dramatic Transformation: Navigating HB 829 and the Emergency Licensing Regulations

By Hannah King and Arin Aragona Plans for Kentucky’s medical cannabis program took a significant turn last week with the passage of House Bill 829 and the implementation of emergency…

Cannabis in Court: When Federal Courts Will Hear Commercial Disputes Related to the Cannabis Business

By Steven Ascher and Anna M.Windemuth The unique status of the cannabis business —  legal in a majority of states, but still illegal under federal law — creates a thorny…

Patchwork Regulation of CBD Products Continues Despite Rise in Demand

By Courtney A. Hunter and Jessalyn H. Zeigler Demand for cannabidiol (CBD) products continues to climb, and the market has risen to the occasion. There is now a robust array…

How Private Equity Trumped Social Equity in State Cannabis Deal

Confidential documents obtained by THE CITY reveal how Chicago Atlantic Group became one of the biggest beneficiaries of the state’s legalization program. Last June, Gov. Kathy Hochul announced that a…

More Categories

Back To Top
×Close search
Search