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A Laotian agriculture company is taking an Australian hemp grower to arbitration after it withdrew from a joint CBD hemp project when the COVID-19 pandemic forced the closure of borders around the world.
Sun Agriculture Promotion Industry and Commercial Co. filed an arbitration claim for $6.1 million with the Centre of Economic Dispute Resolution in Laos, Law360 reported.
The claim was filed against a subsidiary of Cann Global, called Cann Global Asia, after discussions about the joint project fell apart, according to the Australian company.
Hemp cultivators from Cann Global Asia were to arrive in Laos on April 1, but the coronavirus pandemic closed the border March 30.
Cann said it discussed hiring more Sun staff temporarily to begin the project. But Cann said it stopped negotiations, calling Sun’s terms and demands for money “unreasonable” and not part of their agreement.
Law360 could not immediately reach Sun for comment.
We are not the original authors of this article. This content was republished from HempIndustryDaily.com.