Michigan regulators barred from sale as much as $5 million in manufactured cannabis products in Michigan with no explanation last week.
Products barred include vape cartridges and edible products including brands Chewi, Clax, MKX, Motor City Cannabis, Platinum Vape, and Stizy, report operators.
Robin Schneider, executive director of the Michigan Cannabis Industry Association, said that the 300 companies the trade group represents are fully cooperating.
“Our members comply with the holds, and we take the health of our customers very seriously,” Schneider said. “We are hopeful to get some answers in a timely fashion.”
When asked for an explanation yesterday, a spokesperson for The Cannabis Regulatory Agency replied, “No comment at this time.”
Operators and advocates spoken to by Grown In on background speculate that the products moved were a result of underground sales. For instance, the recalled product may have been a result of untested, out of state flower used in production
George Brikho, executive director of the Michigan Caregivers Association, believes that the state is falling behind on protecting the regulated market.
“There’s been a lot of pressure from the state to do more against these bad actors,” Brikho said. “The pressure is on them to do something about this.”
Last week’s unexplained product freeze comes months after another recall in 2021 of Sky Labs product after the company was found to underreport the amount of vape cartridges it produced. Sky Labs was ordered by regulators to pay a $20,000 fine as a result. This also comes on the heels of last year’s multi-hundred million dollar recall of products tested at the Viridis Labs in Lansing last November, the largest recall in state history at the time.
Rush Hassan, owner of REEF Cannabis dispensaries in Muskegon and Detroit, said that some stores could hurt the bottom line of dispensaries by as much as 30%.
“We’re not super affected but for a lot of other people, but it came out of nowhere and it blindsided us,” Hassan said. “The lack of notice of recourse really took us by surprise.”
Dave Murray, CEO of dispensary and cultivator Redbud Roots, does not believe the hold will have a large long-term effect. While he said it affects his edible sales by as much as 20% in Muskegon, he believes the matter will be resolved quickly.