Maine’s most significant health-related cannabis operator is attempting to finish its connection with a corporation behind its quick-developing edibles operation.
Wellness Connection, primarily based in Portland, Maine, contends CanWell of Rhode Island is to blame for $14 million in losses triggered by low yields from its extraction gear and processes.
CanWell, meanwhile, says the charges have been trumped up so Wellness Connection and its corporate parent, Acreage Holdings, can claim the profitable New England cannabis extraction market place for themselves, the Portland Press Herald reported.
The dispute in Maine is element of a bigger legal tangle in between CanWell and Acreage, a New York-primarily based multistate cannabis operator.
CanWell final week filed an arbitration request in Rhode Island, alleging that Acreage breached a noncompete contract by pursuing competing marijuana enterprise possibilities in Maine, Massachusetts and Rhode Island.
In Maine, CanWell mentioned Wellness Connection has stopped generating its 20% sales royalties and, therefore, owes the Rhode Island corporation at least $650,000.
According to CanWell, Acreage owns 97.four% of the corporation that runs Wellness Connection, and executives on the Wellness board do Acreage’s bidding.
Wellness Connection has 4 dispensaries in Maine and a cultivation and processing center, according to Acreage regulatory filings.
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– Linked Press and Marijuana Enterprise Every day