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Rhode Island Judge Blocks Sale of Cannabis Dispensary

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A complaint citing overlapping ownership issues from CanWell led to Judge Richard Licht blocking the sale of Greenleaf to Acreage Holdings. A temporary restraining order has been issued. One item mentioned in the complaint is a “no-complete contract provision.”

The complaint filed by CanWell was 51 pages long, the Providence Journal reported. In it, CanWell noted that Acreage Holdings now owns dispensaries in Maine that purchase products and ancillary services from CanWell. This is where the no compete provision comes into play.

If Acreage did complete the purchase of Greenleaf, it would have been a conflict of financial interest.

Some turmoil in the business arrangement has the agreement with the two entities in danger. CanWell believes that Acreage might be trying to oust them as the edibles supplier for its dispensaries.

The complaint reads, in part: “Having been made aware that CanWell would not simply go away into the night, Acreage and its CEO, Kevin Murphy, responded by commencing a bad faith, scorched earth campaign against CanWell in furtherance of its goal to dominate the New England cannabis market.”

It’s unknown when the restraining order will be lifted or what steps are being taken to resolve the issue.