NEWS BRIEF

Restraining Order Prevents Approved IL Grower From Proceeding

A temporary restraining order keeping a cultivation site in Illinois from opening will remain in place, as a lawsuit by a separate grower who was denied a producer’s license winds its way through the courts.

A Cook County judge ruled that Cresco Labs, which was awarded an MMJ cultivation permit, would have to wait to begin operations pending resolution of the case. After losing out on its license application, cultivation company PM Rx filed suit questioning whether Cresco had enough money to operate their business, according to the Associated Press.

The lawsuit also questions the secret process by which growers were approved for licenses.

The case underscores the problems with having a secret licensing process, a problem seen in not only Illinois but also Nevada. Because of the secrecy, PM Rx said it’s unable to cite exactly why it wasn’t approved and feels it’s better equipped than Cresco.

Cresco is still seeking financing to get its operations off the ground. A subcontractor for the company has sought an additional $29 million in addition to the $7 million it already has to develop Cresco’s farming operations. Cresco’s attorney doesn’t deny that and says the company is allowed to continue seeking funding.

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