Marijuana multistate operator Jushi Holdings said it won a $14.4 million interim arbitration award in connection with a claim that a Florida medical cannabis licensee improperly terminated a franchise agreement in 2018.
A three-person American Arbitration Association panel found that San Felasco Nurseries terminated the franchise agreement with Jushi without cause and in bad faith, according to a news release.
The interim award is subject to a final decision by the arbitration body.
Arizona-based Harvest Health & Recreation acquired San Felasco later in 2018, depriving Jushi of potential royalties, the Florida-headquartered MSO claimed.
San Felasco became a Harvest subsidiary.
Harvest now operates 11 MMJ dispensaries in Florida through that license, according to the state’s weekly update.
The panel’s interim decision calls for Jushi to receive $10.6 million in damages as well as $3.7 million in pre-award interest and post-award interest at a 12% annual rate.
Christine Hersey, Harvest’s director of investor relations, told MJBizDaily on Monday that the company isn’t commenting about the case.
Harvest is in the process of being acquired by Florida-based Trulieve in a deal initially valued at $2.1 billion.
Jushi CEO Jim Cacioppo said in the release that the arbitration panel’s decision reflects Jushi’s ability to “successfully navigate through this complicated and highly regulated industry.”
– Jeff Smith