cannabisnews.com: First Internationl Hemp Company Files Chapter 7 





First Internationl Hemp Company Files Chapter 7 
Posted by FoM on February 28, 2000 at 15:15:28 PT
Press Release
Source: PRNewswire
"Due to circumstances beyond the control of the company, Consolidated Growers & Processors, Incorportated has been forced to file for bankruptcy protection under USC Chapter 7," said Charles Shamash, counsel for the Company in Los Angeles. Recent legislative changes coupled with the continuing bureaucratic bottlenecks in Canada, have made it impossible for the Company to proceed with its activities.
According to Company officials, during the first year of operations in Canada, Doug Brown at The Manitoba Securities Commission made it extremely difficult for the Company to complete its fund raising for nearly 10 months due to an "unofficial investigation" of the Company's purported improper activities raising money from Dauphin farmers. Although the Company was represented by Art Stacy from Thompson, Dorfman and Sweatman, the largest Winnipeg law firm, during the Dauphin matter AND in fact collected NO money from Dauphin local residents, the Manitoba Securities Commission and the local press, led by Roberta Rampton at the Western Producer, publicly harassed and continued to negatively portray the Company's intentions. The fact that the Company subsequently filed a multi-million dollar malpractice lawsuit against Art Stacy and Thompson, Dorfman and Sweatman was never reported by Rampton who was, self-admittedly, "following the Company's activities closely." In January, Revenue Canada, Without Warning or Notice, "attached" the Company's bank account. Although seed sales of grain crops are exempt from Goods and Service Tax (GST) and no other hemp company was charged GST, the Company was levied a $100,000+ tax lien for seed sales in 1999. When asked to explain, Revenue Canada replied "file a written objection and it could take 60-90 days for a ruling."Mark Kaeller, a company spokesperson, said "industrial hemp is such a fabulous opportunity for Canadian farmers and CGP had such great potential, it's too bad we had to set up business in Manitoba. All Canadian growers were only charged a fraction of their seed costs in Spring 1999 and still owe money to the Company," Kaeller said. CGP will now join the endless list of other companies who have lost millions of dollars doing business in Manitoba, Canada. Other Company officials concur that although they made certain poor management, consulting and business associations in Canada, they have learned the hard way why so few companies invest money or do business in Manitoba. Contact: Charles Shamash of the Law Offices of Charles Shamash, 310-205-3400  Los Angeles, PRNewswire Published: February 28, 2000Copyright  1995-2000 Excite Inc. Related Hemp Articles, Web Site & Archives:CGP's Web Pagehttp://www.congrowpro.com/ Hemp Firm Requests Share Rules Exemption http://cannabisnews.com/news/thread3282.shtmlBirdseed Latest Casualty of U.S. War On Drugs http://www.cannabisnews.com/news/thread3218.shtml Hemp Company Clams Up After Firingshttp://cannabisnews.com/news/thread2558.shtml
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