CO Hemp Clone Farm, "Nationwide Hemp Farm", Used Shopper's Cash For Personal Funding Functions Inc Actual Property & Capital Tools Purchases With out Ever Intending To Provide Order Price $ US590Okay, Lawsuit Alleges.


Authorized by: Teri Buhl for Cannabis Law Report

A Real Estate Entrepreneur from Texas, Robert W. Mertz is a company that makes a lot of money for the sale of food and then using that money to improve his hemp farm infrastructure.

In September, MTN Botanicals, based at Fort Collins Co., Sued Mertz, is head of sales and the company is known as National Hemp Exchange in Colorado district court in the county of Rio Grande. Since the lawsuit of the entire Hemp Exchange, worth around $ 600,000 MTN Botanicals now wants triple damages. The lawsuit accuses Mertz of basically running his hemp farm as a Ponzi scheme.

National Hemp Exchange What started in Monte Vista, CO. with a group of Texans assembled by Mertz.

National Hemp Exchange Farm (Source

Ron Jones, a landscaper, which brought on the company's head grower. Jones has a son who suffers seizures and found. Mertz so found a young charming sales person, Austin Buckingham, to sell highly sought after clones to small farmers from Colorado to California. The 40-acre farm in the San Louis Valley, of Southern Colorado, has the capacity to produce 1 million clones a season, according to Buckingham, but sales in 2018 were less than $ 500,000 for $ 1.2 million of revenue. Mertz actually owns the country sits on the farm, held in the Mertz Robert W. trust. Ron Jones told a client interviewed by Cannabis Law Report that when he first got to the farm it was infected with "pests". Jones worked diligently to clean up the farm and develop CBD oil products, which include crude oil on top of growing hemp plants. Hemp clones are hemp plants that have been grown from cuttings from a "mother" plant as opposed to having been grown from seed.


Highlights visiting the National Hemp Exchange in Colorado. Jun 21, 2019

Root Pouch visits National Hemp Exchange & Interview Austin Buckingham's "Marketing Director" National Hemp Exchange. 19 November 2019

Michael Lennon and J.J. Southard, who co-run MTN Botanicals, are long time residents of Colorado with a decade of experience in the cannabis business. They were able to raise $ 2mn in about a month with the help of a private equity investor to build their new hemp farm. Their strategy has been invested in. (19459008)

Early 2019 Lennon and Southard interviewed several hemp clone farms and decided to use National Hemp Exchange because of a strain named The Wife and Cherry that NHE claimed to have a high CBD quotient and low THC percentage.

Hemp Clone: ​​Wife Strain (Image Source: Industrial Hemp Farms)

The National Order of Southard realized that it did not properly set up and reduced the number of clones by half for a payment of $ 590,000. The all cash payment was made by June 4, 2019.

The clones of National Hemp Exchange are called Cherry, The Wife, and Cherry Wine and an average of $ 4 a clone, according to Buckingham. Because the size of the MTN Botanicals was $ 2.75 per clone for the Wife and Cherry strain. NHE's capacity, according to Southard based on his site visits and experience in farming.

Cherry Wine: Hemp Strain (Image Source Rhizo Sciences)

National Hemp did not manage to make the delivery date and Southard and Lennon had NHE had her healthy clones to someone else. In fact after National Hemp Exchange received MTN Botanicals money Southard and Lennon made a site visit to NHE's farm. What they saw surprised you. Southard and Lennon to see a new indoor growing area.


The MTN Botanicals accuses MTT Botanicals accuses Mertz, Jones, and Buckingham of knowing they were unable to provide the clones that MTN Botanicals was seeking, and never intended to provide them.

Instead, Mertz could then employ to MTN Botanicals and their deal as MTT Botanicals asserts they had an employment with them at NHE to defraud and steal from MTN Botanicals support other ventures and so on to purchase property, extraction equipment, other equipment, and additional structures for an in-house grow, which were unrelated to any deal with MTN Botanicals.

MTN Botanicals' funds in. Mental wars Nicole Westbrook a partner at Denver-based Jones & Keller PC on behalf of MTN Botanicals.

Mertz and National Hemp Exchange, which is based on David Hunnum and Kayla Banzali of Colorado Springs Robinson and Henry PC ., Filed a motion to dismiss claiming the accusation of theft, fraud and Conspiracy should be thrown out because this is nothing more than a breach of contract dispute. Hunnum told Cannabis Law Report, "the motion response speaks for itself. MTN Botanicals money, build out their farm. Mertz nor his legal team would answer questions about the plan to sell his farm million to sell it.


J. J. Southard told Cannabis Law Report that National Hemp Exchange put them in touch with Robert Mertz, a man named George Brenda, who supposedly had a large amount of seedlings available. Brenda told them what Mertz was actively trying to sell NHE and move its assets out of state; Brenda said the potential deal was in the millions. Austin Buckingham later confirmed with the MTN Botanical executives.

According to a public records search Mertz is in his 70's and owns a home in the Bee Cave area of ​​Austin in a 5 bedroom home on a golf course. He has partnered in a home building business called Mertz Watson Custom Homes. His profile informs us on "illustrious" family history that includes the building of railway stations and public libraries across the east coast dating back to the 1800s. So he has a business selling railroad cars called Sterling Rail.

Mertz was not present at the National Hemp Exchange MTN Botanicals for the failed clones. The complaint details how Jones and Buckingham knew the plants they were sick and even tried to swap them out. Mertz claimed he had cancer at one point as a reason to return phone calls or emails about problems with his farm's crop, according to Southard.

On top of receiving unhealthy and non-viable plants from NHE, MTN Botanicals also thinks National Hemp Exchange is buying out clones from another Colorado hemp farm and passing them off as their own.

"There were so many inconsistencies on germination rates, CBD content and not a consistent strain of genetics , " Southard told Cannabis Law Report in a phone interview. "We never even received a Certificate of Authority report from NHE."

Austin Buckingham told Cannabis Law Report that they are not testing their plants because of their potential for CBD potency and concentration.

NHE clones and believed NHE were reselling them to their clients at a mark-up and passing the clones off as they grew. This could be a reason that the clones' genetics were not matching what was promised at the time of sale.

MTN Botanicals was not the only farm that received unhealthy clones that this year. Cannabis Law Report has thus been confirmed this week that another west coast farm lost 30 percent of their order from NHE. Mertz was conducting business with his hemp farm.

"We heard National Hemp 5 million clones. We upfront purchased 1.3M but then reduced the order as it was clear. It is clear that they are not living in the country. The pure square footage and arithmetic did not add up to fulfill our order and we were not the only customer. The inconsistency shows that it is intentional and fraudulent, " Southard told Cannabis Law Report.

National Hemp Exchange has filed a complaint with the National Hemp Exchange. NHE and then the judge would rule on the motion to dismiss.

"The Defendants' motions are just another instance of defendants attempting to take responsibility for their actions. There is no dispute that the National Hemp Exchange did not perform as promised by the MTN Botanicals is still hundreds of thousands of dollars misused for other business ventures. In this matter, Attorney Nicole Westbrook told Cannabis Law Report on behalf of MTN Botanicals.

Austin Buckingham has retained his own counsel, Colorado Springs based Justin Bailey of Sanders law. Bailey filed a copy-cat motion to dismiss for Buckingham which copied NHE's text and arguments. Rob Jones wrote the court to join Buckingham's argument. Jones has since left NHE and got a job with a farm in North Carolina. Buckingham still works for National Hemp Exchange.

If MTN Botanicals wins their lawsuit and the theft claim survivors they could be considered at $ 1.8 million award because of Colorado state laws for triple damages. National Hemp Exchange is still actively selling clones.

Sources & References

The Attorneys

Attorney for MTN

Nicole Westbrook

Attorneys for Mertz and NHE

David Hannum

Kayla A. Banzali

The Compliant

Motion to Dismiss Mertz & Lone Star 11-13-19

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