Arbitration Panel Rules in Favor of Jushi in a Breach of Contract and Breach of Implied Covenant of Good Faith Claims Against San Felasco Nurseries, Inc.
BOCA RATON, Fla., July 30, 2021 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced that the American Arbitration Association (the “Panel”) awarded $14,364,920.10 (the “Interim Award”) to Jushi FL SPV, LLC (“Jushi FL”), a subsidiary of Jushi Holdings Inc., in its dispute against San Felasco Nurseries, Inc. (“San Felasco”), a subsidiary of Harvest Health & Recreation, Inc. (“Harvest”). The Interim Award consists of $10,637,012 in damages, plus $3,727,908.14 in pre-award interest (accrued at a rate of $3,497.099 per day) and post-award interest at a rate of 12% per annum. The Panel of three arbiters also affirmed that Jushi is entitled to recoup attorneys’ fees from San Felasco, in an amount to be determined by the Panel.
The Interim Award is based on breach of contract and breach of implied covenant of good faith claims brought by Jushi against San Felasco in October of 2018. In its order, the Panel found that San Felasco improperly terminated its franchise agreements with Jushi FL without cause and in bad faith. San Felasco then sold its Florida cannabis business to Harvest, depriving Jushi of the royalties it would otherwise have realized. Following a final hearing in May of 2021, the Panel issued the Interim Award on July 29, 2021.
“I am very pleased that the arbitration panel has ruled in our favor,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “This is the right outcome and highlights the strength of our Company from a legal and business development perspective to successfully navigate through this complicated and highly regulated industry. We look forward to continuing to execute on our strategy to build the leading, vertically integrated operator by expanding our footprint and driving profitability in the markets where we currently operate.”
Jushi is represented by Wheeler Trigg O’Donnell LLP, in Denver. San Felasco is represented by Kasowitz Benson Torres LLP.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company led by an industry leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts and competitive applications. Jushi strives to maximize shareholder value while delivering high quality products across all levels of the cannabis ecosystem. For more information please visit www.jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.
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