The Kentucky hemp pioneer, GenCanna, may have been one of the frontrunners in developing large-scale CBD production and played a small role in helping to legalize hemp nationwide, but now they are facing mounting challenges that keep piling up.
Their first hurdle is that they are experiencing many delays in their effort to open a new processing facility. Their hope is for the Mayfield based plant to become a hub for processing hemp throughout several Midwestern states.
Contractors they have hired filed 19 liens on the building from Sept. 6 to Oct. 1, The Mayfield Messenger reports. The contractors contest that they are owed $13 million from the company. GenCanna’s President, Steve Bevan, said the contractors would be paid before the matter reached the courts after they fixed some issues with their lender.
Secondly, they are now being sued by the producers they signed contracts with. The gripe of the farmers is over poor-performing seeds and harvests that did not meet the promises they were sold. GenCanna issued an open letter in response. Despite the troubles, they remain strong in their commitment to work with small farmers.
Finally, last week, their headquarters in Winchester had an explosion. Officials are still investigating the cause behind the combustion. The only positive aspect of the situation is that no people were injured in the accident. Production will be delayed for a few weeks, but the slack will be picked up in their other facilities across the state.
Despite all of their setbacks, GenCanna is still optimistic. Not that long ago they were a fledgling startup, and that scrappy nature still lives in the company. They intend to meet each of these challenges head-on.