Michigan regulator suspends cannabis processor license

The Michigan Cannabis Regulatory Agency this week suspended the license of one of the state-licensed marijuana processors, alleging that the company used illegal cannabis extract to manufacture some of its products. In an announcement from the Michigan Cannabis Regulatory Agency (CRA) released Tuesday, the regulator said it had filed formal complaints against TAS Asset Holdings, LLC in Lansing and temporarily suspended the company’s medical marijuana processing and adult use license Cannabis.

The CRA said the processor’s marijuana flower coated with cannabis concentrates known as space rocks was made with illegal isolate that had not been tested for purity and safety and had not been entered into Metrc, the cannabis seed tracking system used to monitor it the movement of licensed cannabis across the state through to sale. The agency also issued a marijuana consumer advisory bulletin warning the company’s customers that the products marketed under the Fwaygo Extracts brand name and manufactured between November 10, 2022 and November 17, 2022 are not in compliance with State laws and regulations have been established and may be unsafe. CRA advised consumers who experienced side effects after using the products to report their symptoms and product use to their healthcare providers.

“The conduct alleged in the formal complaints poses a significant risk to the public health and safety of marijuana users in Michigan,” CRA Chief Executive Brian Hanna said in an agency statement. “As we go through the process to obtain the revocation of these licenses, it is critical that all licensees across the state recognize that the CRA will continue to do everything possible to protect the public from bad actors in the regulated marketplace.” “

The CRA noted that in September, two packages of vape cartridges handled by TAS tested positive for the presence of bifenthrin, a chemical insecticide whose use is banned in Michigan’s regulated cannabis market. Before being transferred to and processed by TAS Asset Holdings, both cartridge packs had passed extensive safety testing with no detection of bifenthrin.

The authority then launched an investigation to determine the cause of the non-compliance with safety regulations. A review of surveillance footage recorded at the TAS facility showed that the cannabis product used to manufacture the vape cartridges was not the same product that was recorded in Metrc and had passed the compliance check. The product used to manufacture the vape cartridges had not been properly processed under the regulated market or entered into Metrc.

“During the investigation, CRA officials noted that the facility had many areas that were dirty and untidy, with leaking containers containing various stages of the process of marijuana and waste,” the regulator claims. “CRA investigators observed that an unauthorized, unlicensed warehouse was used as part of the licensed business. CRA investigators also observed various unlabeled marijuana products, including flower, distillates, concentrates and THCa powder, at the unauthorized storage.”

At the unauthorized storage, regulators discovered several mason jars filled with oil, as well as three barrels and two black containers filled with an unknown substance. The unlicensed area had no security cameras, and none of the marijuana products in the room had Metrc tags, as required by state regulations, the CRA claimed in its announcement.

“A TAS official admitted that the company’s branded product, Space Rocks, is manufactured using the unlabeled THCa powder,” the CRA wrote. “The investigation also found that TAS stockpiled and exchanged illegal marijuana products with regulated products found at the facility. A safe on premises contained three jars of distillate and five jars of concentrate marijuana that had no Metrc labels attached.”

Video surveillance also showed that TAS employees had brought an unlicensed cannabis product into manufacture from a private vehicle. The product did not have a Metrc label and could not be traced back to a licensed company.

The CRA’s formal complaint alleges 23 regulatory violations against each of TAS Asset Holdings’ cannabis processing licenses. The company has the right to request a hearing to dispute the allegations in the complaint. State law also provides for a hearing to determine whether summary stays ordered by the regulator should remain in effect.

The CRA’s lawsuit against TAS marks the second time this month that the regulator has suspended a cannabis processor’s license. On February 3, the CRA suspended the licenses of Candid Labs, a Corunna, Michigan processor operating under the name Layercake Farms. During an investigation, the CRA discovered jars of cannabis distillate that did not have the required Metrc labels.

“Based on its investigation of the conduct alleged in the formal complaints, the CRA has determined that the safety or health of customers or employees is at risk from the continued operation of Candid Labs and that the public health, safety or welfare requires immediate action,” the CRA said in a statement at the time.