There appears to be more trouble for pot producer Hexo Corp.
After the company announced significant financial losses in the final quarter of last year and making some substantial layoffs in 2019 as well, Hexo is now facing a significant lawsuit for not paying a partner in a supply deal for cannabis oil.
MediPharm Labs issued a press release last week saying it filed a statement of claim against Hexo in Ontario Superior Court worth $9.8 million relating to, among other things, a missed payment for the supply deal that was announced in 2018.
Acccording to a BNN Bloomberg report, Hexo was to pay $7.6 million for cannabis oil produced by MediPharm, plus a minimum of $27 million over the next year, with an option to buy another $13 million.
The report says no payments have been made by Hexo since October.
The Quebec-based company has been setting up what it calls a “Cannabis Centre of Excellence” in the former Sears warehouse in Belleville’s industrial park.
