CALEB NICKERSON
OTTAWA April 26, 2019
The recently renamed hemp CBD company Eureka 93 (formerly LiveWell Canada Inc.), who are planning on building a research facility in Litchfield, are in a dispute with Canopy Growth Corp. and its investment wing, Canopy Rivers Corp.
The companies have investment, royalty and offtake agreements dating back to early April 2018.
According to a press release put out by Eureka 93 on April 26, Canopy notified Eureka 93 on April 3 that they had allegedly breached their agreements by, among other things, failing to provide proper notice of the merger between LiveWell Canada Inc., Vitality CBD Natural Health Inc. and Mercal Capital Corporation. As a result, Canopy is opting to terminate their agreements.
However, in the press release put out by Eureka 93, the company calls the claims “tactical” and “frivolous”, and accuses Canopy of being in breach of the agreements themselves because they failed to obtain medical marijuana growing and sales licences for Eureka 93 and its subsidiary Artiva.
In an email to The Equity on April 29, Eureka 93 Communications Director Deborah Stokes said the dispute is still ongoing.
“We have been in constant contact with Canopy and are currently working through our differences through the dispute resolution means provided to us in our agreements,” she wrote.
She declined to comment when asked to explain how Canopy’s claims are ‘tactical’.
Stokes also wrote about the status of the proposed facility in Litchfield.
“As to the status of the Litchfield property, nothing has changed,” she wrote. “We are still committed to this project and are currently having positive discussions with various levels of the Quebec government in moving this forward.”
The Equity reached out to Canopy Growth, who didn’t respond back in time for print.
In November of last year, the company then known as LiveWell was the subject of a $1.6 million legal claim by Delsan-AIM Environmental Service Inc., the company hired to do environmental cleanup at the Litchfield site, alleging they hadn’t been paid.
