The state suspended the marijuana licenses of processor TAS Asset Holdings LLC in late February. The Lansing-based licensee of Fwaygo Extracts, a brand for vape cartridges and concentrates, was allegedly sourcing illegally grown marijuana for use in its processing.
Shortly after it lost its ability to produce product, at least one vendor sued to get paid for product it delivered to the now shuttered processor, yet another legal ripple in an overflowing basin of financial problems in the Michigan marijuana industry.
A year ago, Troy-based integrated marijuana firm Trucenta LLC sent two shipments of marijuana product to TAS Asset to the tune of $251,704, the company alleges in a lawsuit filed in Ingham County Circuit Court on March 9. TAS had 30 days to pay for the product and failed to do so as well as never responding to Trucenta’s repeated demands for payment.
Trucenta is asking the courts to force TAS to repay the total plus legal fees.
A hearing in the case is scheduled for May 24.
The case highlights the precariousness of the industry in the midst of intense price pressure and increased enforcement by state agencies that is shaking out weaker operators, sometimes at the expense of vendors.
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