Investment company sues Longmont CBD company over unpaid note

COMMERCE CITY and LONGMONT — An investment firm with roots in Boulder has filed suit against a Longmont CBD extraction company over the company’s alleged failure to make payments on a $985,000 note.

The case, filed Monday in Denver County District Court, seeks repayment of the note and damages as the court might determine.

The investment firm, Gravel Road Capital LLC, was founded in Boulder but lists a Commerce City address now. The defendants in the case are CFH Ltd., Front Range Farm Ltd. and James R. Ott Sr., who is named as registered agent of Front Range Farm and considered a principal in CFH.

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CFH has its offices at 350 Terry St. in Longmont, the former Times-Call building that now contains multiple businesses. CFH describes itself on its website as a CBD oil bioscience company that produces CBD extract.

As alleged in the suit, Gravel Road Capital bought a 15% membership interest in CFH in 2017 and extended a loan of $985,000. Front Range Farm agreed to indemnify Gravel Road against losses that might occur in the arrangement, according to the court filing.

CFH failed to make 15 consecutive payments, the suit alleges. CFH also has refused to share its financial records, according to the lawsuit, which Gravel Road contends is required by their agreement.

A voicemail message left for Ott at CFH was not returned by time of publication.

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