The Cannabis Regulatory Agency (CRA) has formally lodged a complaint against Sky Labs, LLC, an adult-use cannabis processor in Michigan, for multiple violations under the Michigan Regulation and Taxation of Marihuana Act (MRTMA). The complaint, filed on July 26th, 2024, details several breaches of regulatory compliance, particularly concerning the tracking and sourcing of tetrahydrocannabinolic acid (THCA) isolate.
Sky Labs, holding license number AU-P-000157, operates at 9421 N. Dort Highway, Mt. Morris, MI. The CRA initiated an investigation on March 20th, 2024, prompted by discrepancies in the statewide monitoring system (Metrc). The investigation revealed that Sky Labs had accepted THCA isolate from unlicensed sources and improperly logged these transactions in Metrc.
Improper Sourcing and Recording: Sky Labs received 30,000 grams of THCA isolate on March 6th and 7th, 2024, incorrectly recorded as sourced from a Michigan medical marijuana processor. The processor denied any such transfer.
Further Irregular Transfers: On March 13th and 14th, 2024, Sky Labs recorded receiving an additional 100,010 grams of THCA isolate from another processor, which also denied the transfer. It was found that these isolates were actually sourced from a Colorado business.
Failure to Tag and Track: Sky Labs admitted to not entering the product into Metrc upon receipt in January 2024, delaying this process until March 2024, well beyond the acceptable period for such entries.
Compliance Testing Issues: During an unannounced visit on April 22nd, 2024, CRA staff found THCA in the lobby of Sky Labs. Further, a compliance test on April 19th, 2024, showed discrepancies in how the product was sampled and recorded.
Surveillance Failures: The company also failed to maintain accurate timestamped surveillance footage as required, with discrepancies noted during the compliance test review.
The CRA has indicated its intent to impose sanctions on Sky Labs, potentially including fines, suspension, revocation, or non-renewal of its license. Sky Labs has the right to request a hearing within 21 days to contest these actions or to seek a compliance conference to address the allegations informally.
Sky Labs must submit hearing or compliance conference requests in writing, either by mail, in person, or by email, to the CRA with a copy to the assistant attorneys general handling the case.
For more information, the full complaint can be accessed through the CRA or the legal representatives listed in the document.
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