CWNevada struggling to pay government, workers and creditors – Las Vegas Review-Journal

The Nevada Department of Taxation shut two of CWNevada’s three dispensaries as the cannabis company struggles to pay the government, workers and creditors.

The news spurred creditors to file an emergency motion to impose a receiver over CWNevada, one of the largest cannabis companies in the state.

The regulator shut the company’s North Las Vegas and downtown dispensaries Friday evening through May 2 after it suspended the registration and licenses owned by CWNV, a venture between CWNevada and NuVeda. CWNevada owns 65 percent of CWNV and runs the business, NuVeda said in court documents.

The Nevada Department of Taxation declined to give a reason for the suspension.

“What happened is the Nevada Department of Taxation shut down both the North Las Vegas and Downtown dispensaries on April 12, 2019, for failure to pay taxes—putting the associated privileged licenses in grave danger,” CIMA Group LLC, a CWNevada creditor, said in a filing with Nevada District Court on April 13.

The closures came just hours after the landlord for CWNevada’s third dispensary on Blue Diamond Road filed an action to evict the company for non-payment of nearly $100,000 in rent.

CWNevada CEO Brian Padgett said Tuesday that the company takes the responsibility of holding a marijuana license seriously.

A week earlier, employees filed a class action lawsuit against CWNevada for untimely pay and temporary loss of healthcare insurance.

“CWNevada did not inform Plaintiffs or others similarly situated of the fact that their healthcare benefits were terminated due to lack of payment,” according to the April 4 class action filing.

Padgett told the Review-Journal the company offers “first class insurance coverage” for employees and their families and is in good standing.

These lawsuits add to the seven that have already been filed against CWNevada by investors, edible companies and its business partner NuVeda

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