Credsure fails to halt US$1.25 million cannabis financing lawsuit
A Zimbabwean court has allowed a $1.25 million lawsuit against Credit Insurance Zimbabwe (Credsure) to proceed to trial. The case involves a failed medicinal cannabis export venture where the financier alleges misrepresentation by the insurer.
Why it matters
The ruling highlights the legal risks and complexities involved in financing emerging agricultural sectors like medicinal cannabis in developing markets.
Credit Insurance Zimbabwe Limited (Credsure) has failed to stop a US$1.25 million lawsuit arising from a failed medicinal cannabis export venture after the High Court ruled that there was sufficient evidence for the case to proceed to trial.
Justice Joseph Chilimbe on August 25 dismissed Credsure’s application for absolution from the instance with costs, finding that Harare Receivables Exchange had established a prima facie case of alleged misrepresentation.
The dispute stems from a financing arrangement involving Harare Receivables, Credsure and Nhimbe Fresh Exports, which was seeking to produce and sell medicinal cannabis biomass to an offshore buyer.
Harare Receivables advanced Nhimbe Fresh funding against expected proceeds from a cannabis supply deal worth millions of dollars, with the transaction backed by a credit insurance policy issued by Credsure.
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