CLOSED POT STORE PROMISES LITIGATION

A marijuana dispensary in Libby shut its doors last week after police
issued a citation for operating without a valid city business license.

The business, Helping Center of Libby, plans to take legal action
before its court date next Monday.

"There's no question we'll be filing an action against the city," said
Kevin Moore of the Helping Center. "... On or before the 21st my
attorney will be addressing it."

In a 4-2 vote, the Libby City Council revoked the Helping Center's
license last December, effective Feb. 5, after the council determined
that the business was in violation of Libby's business license
ordinance. A clause in the ordinance requires that businesses follow
all applicable local, state and federal laws. While medical marijuana
is legal in Montana, the U.S. government doesn't recognize the drug's
medicinal uses.

Councilmembers said they unknowingly approved the Helping Center's
business license last fall because the application did not explicitly
state it was a medical marijuana provider, but a "pain clinic."

Moore, who set up the business in Libby, contends that he did so in an
honest and open way. He argues that municipals have no right to outlaw
a trade that is regulated by the Montana Department of Public Health
and Human Resources.

"I think this is an agenda by the mayor," Moore said. "I don't think
the council voted freely to have our license rescinded."

Mayor Doug Roll disagrees.

"There's no political agenda. It's just the way the law was written.
That's it," Roll said. "The council made a decision, after a hearing
with this guy, to give him time to locate somewhere else."

Moore said the business may temporarily operate at a location outside
the city limits.

"If we have to service our patients at a new location, we may get a
second location very soon," he said.

The Libby dispensary is part of the Helping Centers of Montana - a
group of eight separately-registered S corporations. The medical
marijuana clinics operate in Kalispell, Libby, Bigfork and Columbia
Falls, with new clinics in Eureka, Whitefish, Cut Bank and Glasgow on
the horizon.

Rhonda McDowell-Rowen, who works out of the Kalispell-based corporate
office, replaced Moore as director of the Helping Centers last year.
Moore said he has sold all of his shares to the business and no longer
has a financial stake in the enterprise.

He says he remains involved out of an obligation to existing
shareholders and patients.