A three-person American Arbitration Association panel found that San Felasco Nurseries terminated the franchise agreement with Jushi Holdings without cause and in bad faith and awarded $14.4 million to Jushi. When San Felasco then sold its Florida cannabis business to Arizona-based Harvest Health & Recreation, Jushi claimed it was deprived of potential royalties.

Harvest Health & Recreation now operates 11 MMJ dispensaries in Florida through the acquisition of San Felasco Nurseries. The dispensaries offer a range of cannabis supplies, from pre-rolled cones to CBD tincture bottles.

To complicate things further, Harvest is in the process of being acquired by Florida-based Trulieve in a deal valued at $2.1 billion. Harvest’s director of investor relations, Christine Hersey, said that the company isn’t commenting about the case.

Jushi founder and CEO Jim Cacioppo said in the release that the arbitration panel’s decision reflects Jushi’s ability to “successfully navigate through this complicated and highly regulated industry.”

The panel’s interim decision calls for Jushi to receive $10.6 million in damages as well as $3.7 million in pre-award interest and post-award interest at a 12% annual rate. The interim award is subject to a final decision by the arbitration body.