Four million hemp seeds belonging to Exotic Canopy Solution are being held hostage by a Colorado hemp producer. Exotic Canopy Solution is a California registered hemp grower in the business of selling hemp seeds and plants.
The company’s valuable cultivar known as Hempress 3 (H3) is prized by many hemp farmers for its high yield, high CBD concentration, and consistently low THC and its attractive flowers. A lawsuit was filed on the 25th of August 2020 against Colorado Hemp Operation LLC and the Curnative farms LLC on account of the seeds delivered not meeting the demand agreed between the two companies.
On January 24th 2020, the ECS entered an agreement with the Colorado hemp operation LLC which was represented by its president Le-An-Than and Curnative Farms LLC also being represented by its president Ryan Nguyen. The agreement between the two parties was to grow, harvest, process, and deliver a seed crop of an anticipated 4 million H3 seeds by June 12th, 2020.
The parties agreed that the seeds would be free of mold and contaminants and would meet a minimum germination rate of 80%. In return, ECS would provide Colorado Hemp Operation LLC with $50,000 in working capital and pay a contractually set price per seed.
The Colorado Hemp Operation grew the hemp under poor greenhouse conditions and as a result the seed crop was blighted by mildew and had a high dormancy rate. ECHO’s incompetence led to a late harvest, making the delivery deadline of June 12, 2020, impossible. When ECHO finally completed the testing required as a prerequisite for delivery, the seed crop not only tested positive for mold and heavy metals, it had such a low germination rate that it qualified as crop failure under the contract.
Exotic Canopy now says that the hemp seed breeders are holding hostage 4 million seeds which rightfully belong to them. The defendants are threatening to sell the seeds unless ECS pays a price beyond the parties’ bargain.
The complainant now claims $3.4 million in damages. The Colorado companies have not yet responded to the claim and a court date has not been set.