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MEDIPHARM LABS SUES HEXO FOR $9.8M

Last weekend, Barrie, ON extraction and purification firm MediPharm Labs distributed a press release announcing its wholly-owned subsidiary had filed a statement of claim against a then-unnamed licensed producer. At issue was $9.8M in unpaid bills connected with a private-label supply agreement. On Monday, BNN Bloomberg revealed the LP was the alreadystruggling Quebec LP Hexo.
New Cannabis Ventures, BNN Bloomberg

  • According to legal documents, Hexo has failed to make payments on the outstanding amount since October.
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  • On Hexo’s end, the deal involved UP Cannabis, a REC brand from Newstrike Brands, which Hexo purchased for $260M last year.

A Hexo representative said the matter involved a contract Newstrike signed before its acquisition, and Hexo intends to fight the suit.

Quick Hits

  1. Germany, Europe’s largest MED market, more than doubled its MED flower imports in 2019, from roughly 3,000 kilograms in 2018 to 6,714 last year. Several LPs are already exporting MED to Germany, and many more are angling to get EU-GMP certified in order to join in the fun.
    MJ Biz Daily