Colorado cannabis operator seeks financial damages in counterclaim

Bonanza Cannabis Co. is seeking financial relief from one of Colorado’s largest cannabis cultivators that filed a complaint against the brand in June alleging it knowingly sold products with illegal hemp-derived THC.

In a Thursday news release, Englewood, Colorado-based Bonanza called the allegations levied by Mammoth Management and its affiliates – Mammoth Farms and Mammoth Manufacturing – “baseless” and an improper use of the legal system to hurt its business and boost Mammoth’s sales.

Bonanza said it is seeking financial damages to be determined at trial.

“We were leery of the allegation because there is currently no test identifying hemp-derived THC that has been required nor sanctioned by Colorado’s Marijuana Enforcement Division (MED),” Bonanza co-founder and co-owner Conlan Keller told MJBizDaily via email.

“We understand some labs are developing tests that are currently in beta phase, but none of those tests have been approved, much less required.”

In its counterclaim, Bonanza said Denver-headquartered Mammoth has yet to produce any evidence to support its allegations that Bonanza products contained banned substances.

Under Colorado statutes, it is unlawful for any individual or entity to “distribute, dispense, manufacture, display for sale, offer for sale, attempt to sell, or sell” any product containing synthetic cannabinoids.

Mammoth, a vertically integrated marijuana operator, is seeking financial restitution from Bonanza for lost sales, court fees and related legal expenses, according to its lawsuit.