OWNERSHIP DISPUTE: An ownership dispute in West Memphis is heading to court.
A dispute over the ownership of a West Memphis dispensary is headed to court after a rocky management transition last month resulted in the store’s brief closure and the previous management chopping down the dispensary’s cannabis plants.
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Comprehensive Care Group, the limited liability company that owns the dispensary, filed a lawsuit Tuesday against Body and Mind, a public company based in Nevada. (The dispensary is also called Body and Mind, though a name change is expected this week.) The case was filed in Pulaski County Circuit Court and has been assigned to Judge Mackie Pierce.
Comprehensive Care Group is asking Pierce to terminate Body and Mind’s claims to ownership of the dispensary.
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Typically, the state Medical Marijuana Commission must approve changes of ownership for marijuana-related businesses. But the plaintiffs say this matter is “beyond the authority and competence of the MMC to decide.”
The ownership transfer of the West Memphis dispensary has proven tricky. The arrangement between Comprehensive Care Group and Body and Mind involves a loan of $1.25 million from a Body and Mind subsidiary named DEP Nevada. The loan, known as a convertible loan agreement, could
