Arkansas medical marijuana firm sues over replacement license

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An Arkansas medical cannabis company filed a lawsuit against three state agencies over a failed bid to win a dispensary license.

Medicanna filed the suit in Pulaski County Circuit Court against the state Medical Marijuana Commission, Alcoholic Beverage Control Division and Department of Finance and Administration, according to Arkansas Business.

The suit argues that after a business that initially was granted a permit failed to open, regulators should have given a “replacement” license to Medicanna, which had the second-highest application score.

Instead, the Medical Marijuana Commission awarded the license in question to Nature’s Herb & Wellness in a process that was “plagued by unlawful and inconsistent procedures,” according to the lawsuit.

Pine Bluff-based Medicanna was disqualified because it accepted the return of half its $7,500 application fee, the complaint alleges.

Arkansas previously received heavy criticism for the way it handled the application process for MMJ cultivation licenses.

A spokesperson for the Department of Finance and Administration told Arkansas Business the agency is reviewing the lawsuit along with the state attorney general’s office.