Cann Group to “Vigorously Defend” Legal Proceedings by Rua Bioscience for Breach of Contract

The legal battle between Cann Group and Rua Bioscience has taken a new turn as Rua has launched legal proceedings against Cann Group’s subsidiary Cannoperations for an alleged breach of contract. Rua claims that Cann was supposed to exclusively supply medicinal cannabis products to Rua for re-sale in Australia and New Zealand, but the alleged breaches have caused significant damages to Rua.

In response, Cann Group has stated that the legal action stems from a manufacturing and supply dispute that has escalated over time. Despite their efforts to resolve the issue amicably, Cann Group denies the claims brought against them and has vowed to vigorously defend the action.

The dispute between the two companies has been ongoing, with Rua revealing that Cann had given them 12 months’ notice to terminate the supply agreement in early December. This move prompted Rua to explore alternative supply partnerships due to recent quality issues with Cann’s export products.

Rua Bioscience’s chief executive, Paul Naske, emphasized the importance of maintaining the highest standards in product quality and ensuring the continuity of their operations. While acknowledging the history they have had with Cann, Rua is committed to securing multiple additional supply pathways, including cultivating their unique genetics in Europe and Australia.

As the legal proceedings unfold in the Supreme Court of Victoria, the outcome of this dispute will have significant implications for the medicinal cannabis industry in Australia and New Zealand. Stay tuned for further updates on this developing story.