Marijuana Refinery Sues Boulder-Based Wana Brands Alleging $5 Million in Damages Following Failed Merger

LP's lawsuit says merger discussions ended in December 2017 after its sales allegedly plummeted and several LP employees resigned allegedly in anticipation of the merger.

COLORADO: A Colorado marijuana refinery, LP Capital LLC (LP), has sued Mountain High Products, which does business as Wana Brands, an edibles company, and the edible maker’s CEO following a failed merger. The refinery’s lawsuit (District Court, Boulder County, 2018CV30336) seeks monetary damages, to enjoin Wana from using and continuing to use certain business information learned during the merger negotiations and from continuing to employ a key employee it hired during the negotiations from LP.

According to the suit filed by Henderson-based refinery LP, Wana, which dominates Colorado’s infused product market and its part-owner and CEO, Nancy Whiteman, began merger discussions with LP in July 2017.

In building its vape strategies, the suit says LP had spent more than one year and approximately $2 million dollars hiring a marketing firm, an internal marketing person for brand design, packaging, and “go to market” strategy, a chemist to work on formulation and to build and equip a lab, two industry veterans to work on hardware, production and related vape strategies, acquiring Shift Cannabis for the company’s industry knowledge and contracts to develop the business plan and hiring a sales manager and other sales personnel.

LP’s lawsuit says merger discussions ended in December 2017 after its sales allegedly plummeted and several LP employees resigned allegedly in anticipation of the merger. LP’s key employee, a sales and new product designer, by then had been allowed to become an employee of Wana, the suit alleges.

LP owns and operates a marijuana products refinery in Adams County, Colorado, the suit says, adding that its product lines include marijuana “distillate oil” in the form of “vape” pen cartridges and syringes, as well as “solid states” products such as shatter and waxes.

Read full article @ PRWeb

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