Ongoing spat between Eureka 93 and Canopy partners

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Added: Wed, 05/08/2019 - 7:04pm
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Allyson Beauregard

MRC PONTIAC – LiveWell Canada Inc., recently renamed Eureka 93 following its merger with Acenzia Inc., located near Windsor, Ontario, and Vitality CBD Natural Health Products Inc., an American company, is currently in a dispute with its partners Canopy Growth Corporation and its investment section, Canopy Rivers Corporation.
In November 2017, LiveWell entered into an arrangement with Canopy consisting of three agreements: investment, royalty, and offtake. Eureka received notice on April 3 in which Canopy alleged they had breached a number of covenants favorable to the Canopy companies, including failing to notify them of the proposed merger of the three companies, among other things. Canopy has proposed terminating their agreements.
In a press release, Eureka says Canopy’s claims are “tactical” and “frivolous”. They also say Canopy is in breach of agreement conditions themselves by failing to assist them and Artiva (a facility in Ottawa) to obtain licenses to grow and sell medicinal marijuana, which also gives them the right to terminate their agreements. 
A dispute resolution process is currently in place.
Eureka 93 is aiming to become a leader in the cannabidiol (CBD) sector through the cultivation and extraction of hemp. The Canadian-based company is headquartered in Gatineau, with locations in Eureka, Montana, Windsor, Ontario and Las Cruces, New Mexico. The company continues to assure the Québec government that it is committed to its projects, including the Litchfield Industrial Park site.