Dispensary ownership change delayed amid lawsuit

Transfer of Body and Mind to new owners pushed back by state commissioners

By Don Wilburn

donaldfwilburn@gmail.com

The Arkansas Medical Marijuana Commission has once again postponed approving an ownership change for a West Memphis dispensary as it has become entangled in a lawsuit. The commission voted 32 to table the proposed change in ownership after the owners of the dispensary filed a lawsuit against a Nevada-based group seeking a stake in the business.

Comprehensive Care Group, the owners of the West Memphis dispensary formerly known as Body and Mind LLC, filed a lawsuit in Pulaski County Circuit Court on Tuesday. They asked the judge to terminate claims of ownership by Body and Mind, Nevada Medical Group LLC, DEP Nevada, and Big Stone Farms AR1 LLC.

The new name for the dispensary, Comprehensive Care Group, took effect on Thursday. Abtin Mehdizadegan, an attorney representing the proposed ownership change, argued that the lawsuit filed by Comprehensive Care Group was an attempt to thwart the transfer after knowing the commission's stance on not approving changes during legal disputes.

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The lawsuit alleges that Body and Mind has 'illegitimate claims' on the business. It states that Comprehensive Care Group repaid a loan from DEP Nevada in full via a cashier's check, thereby ending conversion rights for DEP Nevada.

At the previous meeting, the commission had tabled a proposed ownership change that would have seen Big Stone Farms take a 40 percent stake in the dispensary.

This deal included 66.67 percent of voting shares and distributions. Attorneys for Big Stone Farms warned that if the deal was not approved by March 15, it could fall through and potentially lead to the closure of the dispensary.

The commission decided to delay the approval in light of the ongoing lawsuit and the need to review additional documents associated with the ownership change. The situation remains unresolved as the legal battle continues.