A subsidiary of a Canadian corporation is suing its former director for allegedly stealing a Phoenix medical marijuana dispensary and refusing to give it back after he was pushed out.
Emerald Dispensary, which is located in northwest Phoenix, is owned by Nabis Holdings, a publicly-traded corporation based in Toronto, Ontario, according to court documents.
The dispensary itself is managed by Nabis AZ, a subsidiary of Nabis Holdings, through an agreement with the former operator of the business, Perpetual Healthcare Inc., an Arizona-based nonprofit corporation. Mark Krytiuk, president of Nabis Holdings and chair of its board of directors, had been appointed as director and officer of Perpetual in this arrangement to oversee the dispensary.
But in June 2020, the relationship between Krytiuk and the various companies he was representing “began to deteriorate,” the lawsuit states. Nabis Holdings made moves to remove Krytiuk as the head of Perpetual, and he was eventually removed as the corporation’s board chair “as a result of concerns among board members regarding Krytiuk’s conduct.”
The Canadian corporation demanded that Krytiuk hand over control of Perpetual. But Krytiuk “refused” to give up Perpetual or the dispensary. The lawsuit alleges that Krytiuk is “attempting to steal Nabis Holdings’ interest in Perpetual and Nabis AZ’s exclusive management rights in the dispensary.”
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As a result of Krytiuk’s conduct, Nabis Holdings “cannot raise the money necessary” to pay back a loan that had been issued to finance its initial acquisition of the dispensary, the lawsuit states.
“Krytiuk is aware of the refinancing negotiations, but continues to refuse to return control over Perpetual and the Dispensary, jeopardizing the Nabis Holdings’ refinancing plans and Nabis AZ’s ability to continue its business operations,” the complaint states.
Jeffrey Madura, the attorney representing Nabis AZ, declined to comment on the lawsuit.
Lindsay Schube, the attorney representing the defendants, did not respond to New Times‘ request for comment.
Nabis AZ is seeking a temporary restraining order or a permanent injunction to keep Krytiuk from handling or receiving assets or income from Perpetual and the dispensary.
The lawsuit, filed on October 15, arrives on the heels of reports that Nabis Holdings is in shaky financial territory.
According to a Green Market Report published on September 1, Nabis Holdings said that it has “incurred losses” and has had “negative cash flows” since its inception that have been funded largely from outside financing activities. The company also said that it needs to raise more capital in the next year to “support current operations and planned development.”