An Auburn-primarily based enterprise that runs 4 of the eight health-related marijuana dispensaries in Maine fired back at its extraction companion Wednesday by filing a complaint in Cumberland County Superior Court.
Wellness Connection of Maine filed the 33-web page civil action looking for an unspecified quantity of damages for breach of contract against CanWell, a enterprise that extracts merchandise for edible marijuana and that has operations in Maine.
Wellness Connection, which filed the lawsuit as Northeast Sufferers Group, claimed that CanWell did not carry out extractions up to contract expectations.
For its portion, CanWell filed a 51-web 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, amongst other issues, that Acreage and Wellness Connection breached a lengthy-standing contract by terminating it July 12. The enterprise stated Wellness Connection owes it upward of $650,000 in item royalties and has not paid something in 2019.
A massive portion of the disagreement is more than CanWell’s yields for extracting THC from marijuana plants.
The CanWell filing stated that Wellness Connection CEO Patricia Rosi in January 2019 expressed displeasure with CanWell’s yields. She reportedly stated the yields had been significantly less than 40 %. Wellness Connection’s yield targets had been 85 % to 90 %. According to CanWell, Acreage stated the yield disparity resulted in losses of $14 million for Wellness Connection.
But in its claim, Wellness Connection blamed CanWell for underperforming and stated its course of action extracted only 20 % to 30 % of the THC, the major active ingredient of cannabis.
“Unfortunately, CanWell underperformed in quite a few places, but particularly, the operating procedures it laid out for us had been flawed,” Matt Warner, an lawyer representing Wellness Connection, stated in a ready statement. “The procedural flaws brought on the gear to regularly create extremely low yields, and brought on [Wellness Connection] to drop massive quantities of important THC.
“Despite various attempts to restore the connection, the vendor at some point refused to cooperate and we had been forced to terminate the agreement,” he stated.
Wellness Connection entered into a lengthy-term contract with CanWell in 2015 to give the gear, business experience, typical operating procedures and on-web page coaching so that Wellness Connection workers could extract THC from the cannabis plants.
In its filing, CanWell alleged that the troubles lie with Wellness Connections workers.
It blamed higher turnover and inexperienced workers at Wellness Connection for the decrease than anticipated yields. CanWell claimed that 20 workers from Wellness Connection’s processing and kitchen departments quit or had been fired given that Oct. 1, 2015.
But Wellness Connection countered in its complaint, saying, amongst other issues, that CanWell supplied faulty gear, and did not completely help and update it when the state of Maine implemented new specifications for marijuana extraction facilities, as the contract essential.