Business & Development, Creswell

One Gro sued for $455k for alleged breach of contract


A human resources company, Tradesmen International, LLC is suing One Gro Investments for $455,721 for an alleged breach of contract with the company.
”It’s a fairly large loan, and it’s not secured, so (Tradesmen) wanted to get a guarantee on it,” One Gro CEO Dan Isaacson told The Chronicle. He said that the lawsuit is acting as a lien, ”to essentially make sure that One Gro does not run off in the middle of the night.”
The delay in payment comes from the delay in the One Gro harvest, Isaacson said. Typically, most people harvest their marijuana crops in October, but ”the further you get out from October, the more profit there is” in marijuana sales, he said.
One Gro has been ”sending a promissory note every month, but the further out (One Gro) got (on payments), the more nervous (Tradesmen) got,” Isaacson said. ”It’s a half-million dollar word (of honor) and there’s no good method for this in the cannabis industry.”
Despite the suit, Isaacson said it’s a common business practice and that it will soon be water under the bridge.
”We’ve got $1.2 million dollars in assets that we’re about sell on the open market; that more than pays for their suit,” Isaacson said. ”This issue will be resolved in a few weeks.”



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