Foul Play Hurts Marijuana Businesses

Penny stock Terra Tech, an indoor growing facility company whose subsidiary, MediFarm, is positioning itself to grow marijuana and is also allowing individuals to buy weed online through their website, has filed suit against Anson Funds of Toronto for libel. Terra Tech officials claim Nevada’s Clark County commissioners while considering Terra Tech for a grows license, were sent false information in order to steer them away from the company. 79 applicants are competing for only 18 grower’s licenses. Derek Peterson, CEO of Terra Tech, said, “They were repeatedly emailing commissioners, giving them false information about our company. They claimed the FBI had raided our offices, which isn’t true.”

MediFarm will apply for cultivation and production permits in North Las Vegas, Reno, and Clark County. They will also be filing applications to run dispensaries in Las Vegas and Reno. Peterson told MainStreet, “We were specifically told by one commissioner that he voted against licensing us because of the information that had landed there from detractors.”

The company hasn’t halted its plans. Peterson said, “we still applied at the state level because they don’t rank applications in the same way that the local level does. We could be in a position to have another chance at those permits.”

Terra Tech’s lawyers will move ahead with a civil suit claiming tortious interference. This is the act of using a phony name in order to disrupt the business of another. Peterson stated, “Taking deliberate action to force a company’s stock price to drop could violate securities law as well as several civil laws.”

On another front, an online Twitter user who goes by @Laughinpaulryan has been writing pernicious false statements about the company. One tweet claimed that a member of the board was going to jail. Cannabis legal expert Tae Darnell explained, “This is a reflection on people who engage in unethical business practices. As with any new and exciting industry, there are people who will do anything to cash in. Unfortunately, integrity gets thrown out the door for the cash prize. It’s shameful that any of this goes on.”