Portland CBD manufacturer Sentia Wellness is facing a $2.2 million suit over allegations it backed out of an agreement to buy Italian chocolate making equipment.
Sentia, founded by former executives from controversial Portland recreational marijuana company Cura Cannabis, raised $91 million and employed 150 when it launched last September. Sentia markets its products under the Social CBD brand.
The company laid off more than 30 people in February, though, and its prospects appear increasingly uncertain despite its hefty fundraising.
CBD is cannabidiol, derived from hemp. While it doesn’t contain the psychoactive ingredient in recreational marijuana, CBD enthusiasts believe it has properties that can improve health and well- being.
However, November guidance from the Food and Drug Administration barred companies from marketing CBD as a dietary supplement.
That frustrated Sentia’s plans for CBD-infused chocolates, according to the lawsuit against the company by TSW Industries, an Italian company. TSW accuses the Portland company of breaching their contract and says Sentia still owes 1.9 million euros for the chocolate manufacturing equipment, about $2.2 million.
TSW filed its complaint in Multnomah County Circuit Court last week. Sentia did not immediately respond to a request for comment.
In June, Sentia sued commercial real estate company Epphaven Property after Sentia sought to cancel a lease agreement for its 15,000-square-foot headquarters in Portland’s Pearl District.
Sentia said in that complaint, also filed in Multnomah County, that the FDA’s November ruling and the effect of the coronavirus’ pandemic on office work constitute “a series of unanticipated events that have rendered the parties’ commercial lease impracticable, if not impossible.”
— Mike Rogoway | firstname.lastname@example.org | twitter: @rogoway | 503-294-7699