EnCann Files Enforcement Petition in BCSC Regarding Arbitration Award Against BC Hop Co.

Published: May 27, 2021

EnCann Files Enforcement Petition in BCSC Regarding Arbitration Award Against BC Hop Co.

On May 21, 2021, EnCann Solutions Inc. filed Petition in BC Supreme Court under proceeding no. S-214966 (the “Petition”) against BC Hop Company Ltd. The substance of the Petition is to enforce an arbitral award pronounced in favour of EnCann against BC Hop Co. in BCICAC File No. DCA-2134, “EnCann Solutions vs. BC Hop Co.” (the “Arbitration”).

On May 10, 2021Joe McArthur (the “Arbitrator”) delivered a Partial Final Award in the Arbitration. In his award, the Arbitrator found that BC Hop Co. materially breached its contract with EnCann dated December 4, 2018 for the purchase and sale of 10 metric tons of industrial hemp. The Arbitrator found that “BC Hop took the right to sell the Biomass reserved for EnCann, without negotiating with EnCann for the right to do so.”

The Arbitrator ordered BC Hop Co. to pay $760,763.40 in damages and return the $100,000 plus GST deposit provided in late 2018 by EnCann to BC Hop Co. Interest and costs are yet to be determined by the Arbitrator.

Lincoln Johnson, CEO/CTO of EnCann, said: “This has been a hard-fought 2-year battle for us, with BC Hop Co. doing its best to avoid and evade accountability at every turn. We filed this enforcement petition because Dwayne Stewart, CEO of the BC Hop Co. has made it very clear to us that he has no intention of ever paying this debt, so we are taking every legal step necessary to protect our interests.”

EnCann is located in Kelowna, BC. EnCann’s application for a Standard Processing license is currently under Active Review by Health Canada, and the company looks forward to exploring partnerships with companies in the cannabis industry who share its focus on professionalism, honesty and integrity in their business dealings. For further inquiries regarding this story or doing business with EnCann, please contact info@encann.ca