Delta Extraction, the Robertsville-based marijuana manufacturer at the center of Missouri's massive product recall last year, is being sued for nearly $20 million in unpaid invoices and loss of revenue by a former contractor.
SND Equipment Leasing is a Missouri company that created the THC concentrate oil that led to regulators' decision to pull more than 60,000 marijuana products off the shelves in August and revoke Delta Extraction's manufacturing license in December.
SND claims Delta Extraction owes the company more than $13 million for producing about 1,100 liters of THC concentrate oil, or distillate, and other products, according to the company's lawsuit filed in Franklin County last month. A liter of 80% concentrated THC can make more than 70,000 individual gummies at 10mg THC a piece, industry experts say. That's almost 80 million doses — or twice that amount if they're 5mg THC gummies.
The company is also asking for $5 million in loss of revenue, after the state confiscated its extraction equipment that was inside Delta Extraction's facility for five months. SND's attorney Joy Primoli told The Independent Tuesday that Delta Extraction contracted SND to do a job, and it was Delta's responsibility as the licensee to make sure the work was in compliance with marijuana regulations. SND had no authority to communicate directly with regulators, she said.
Read more at missouriindependent.com