OWENSBORO, Ky. (WEHT) — A settlement has been reached in the lawsuit between hemp processor Bluegrass BioExtracts in Owensboro and the company that bought it late last year, Nevada based D-tech Ventures.
The $69 million dollar settlement gives some rights back to the owners of Bluegrass BioExtracts, although no money changed hands and leaves many farmers with unanswered questions. The settlement returned the keys of the former Bluegrass BioExtracts building back to the owners, Dr. Gerald Edds and Bruce Peters and returned their equipment to them. While Edds tells me the company is looking ahead to the future now that they have received a provisional license to go ahead with their new company called Precision Biotech LLC, some farmers who had contracts with the old company say they are being left out to dry.
“I’m 63 and all I’ve done is farm. I’ve never put a crop out that’s taken me this long to get money for,” said farmer Neal Rudy.
Rudy is one of many farmers who had a contract with Bluegrass BioExtracts. “Dr. Edd signed my contract and I expect for him to honor it,” said Rudy.
After hearing the company sold to D-tec Ventures from Nevada, he took back his hemp stored at the company.
“We started working with another company and nothing has come forward yet, but at least they’re in business and they’re buying biomass,” said Rudy.
Out of 2,200 acres he farms, Rudy says he’s clad he only invested 5 of them to grow hemp.
“We’ve lost money. We’ve lost weight with it sitting in the sacks, there’s no question about that, and whether the oil content has deteriorated, I’m sure it has too,” said Rudy.
Rudy is now in the process of doing business with another company but says he still feels Bluegrass BioExtracts is shorting him. Although the doors of the building were locked at when the company shut down, Dr. Edds claims farmers still could have picked up their plant material called Biomass at any time. Dr. Edds tells Eyewitness News if he continues his plan to move forward with his new company, Precision Biotech, he doesn’t expect to extract oil from the hemp until June at the earliest.
“You call up there it’s,’Oh we’re getting ready to take the oil out of it.’ Anyime you called they say we’re getting ready, we’re getting ready,” said Rudy.
Currently, the facility holds about 100,000 pounds of biomass from various farmers, according to Dr. Edds.
“I cant put my trust back in these guys anymore and I don’t know who in the world would,” said Rudy.
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(This story was originally published on Feb. 17, 2020)