California cannabis business sues 4Front for alleged unpaid fees

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A cannabis company in California is alleging in state court that it is due more than $400,000 in connection with a sale three years ago.

Brothers for Life claims the sale agreement with Vancouver, British Columbia-based Cannex Capital Holdings in 2018 called for additional fees of at least $200,000 a year to be paid in 2019 and 2020, but the payments haven’t been made, Law360 reported.

Arizona-based 4Front Ventures acquired Cannex in 2019, so 4Front is named in the lawsuit filed Aug. 2 in California state Superior Court.

Brothers for Life claims that 4Front agreed to “accept any and all liabilities of Cannex with respect to the agreement.”

4Front didn’t immediately respond to an MJBizDaily request for comment.

According to the complaint, payments were to begin after the operation was issued a permit by the city of Commerce.

The city approved a development agreement in May 2019 that was in effect the final permit, Law360 reported, citing the complaint.