Lawsuit filed over license and sale of Newport medical marijuana cultivation facility

Lawsuit filed over license and sale of Newport medical marijuana cultivation facility

NEWPORT, Ark. (KAIT) - The city of Newport filed a lawsuit in Jackson County Circuit Court on Monday, April 5 with 11 different counts, including breach of contract after the Arkansas Medical Marijuana Commission approved the sale of Natural State Wellness Enterprises, LLC to Good Day Farm, LLC back on Nov. 10, 2020.

The sale transferred the cultivation facility from Newport to Pine Bluff.

The city of Newport, the Newport Economic Development Commission, the Northeast Arkansas Charitable Foundation, and the Newport-Jackson County Industrial Development Bond Board are seeking over $5 million in damages “without notice” about the sale and transfer.

They cite Good Day Farm, LLC was incorporated on Nov. 12, 2020, and did not exist when the license and transfer were approved.

Director Jon Chadwell appeared before the Arkansas Medical Marijuana Commission on March 2, asking them to reconsider the sale of the license and transfer.

The commission said the matter would have to be resolved in court. Those named in the lawsuit have 30 days to respond.

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