Update: This story was revised July 13 to include additional statements provided by MEDfarms and its attorney.
A marijuana processing facility in Bay City had its license suspended indefinitely by the Michigan Marijuana Regulatory Agency on Monday.
“Based on its investigation of the conduct alleged in the formal complaint, the (agency) determined that the safety or health of patrons or employees is jeopardized by” continued operation, the suspension order said.
The facility is operated by MEDfarms, which is listed in state records as 3843 Euclid LLC, and operates Dispo, a marijuana retailer at the same address, 3843 Euclid in Bay City.
The suspension comes after the state on July 8 announced the recall of 10,000 marijuana-infused chocolate edibles sold under the brand name Covert Cups.
Regulators said a compliance check discovered improperly packaged product that wasn’t accompanied by labels to confirm it had been entered into the state’s test tracking system, called METRC. The Michigan Marijuana Regulatory Agency also noted evidence of other safety and production violations, including video footage of an employee repeatedly licking her gloved finger and a spatula used in production of the chocolates.
Attorney Denise Policella, who represents MEDfarms, said the “misleading way in which the (Marijuana Regulatory Agency) press release was couched obviously leads to assumptions that the spatula was used in production.” Policella said that is “patently false” and the incident occurred on a day when the employee was taste testing for research and development, rather than as part of production.
MEDfarms laid off 100 employees due to the suspension and called the state’s claims “disparaging” in a formal statement issued Tuesday, July 13.
“We wish to assure our business partners and the public at large that our facility is unequivocally clean and safe, as are the lab-tested marijuana products we manufacture,” MEDfarms said. “We have always worked closely and collaboratively with the (Marijuana Regulatory Agency), and despite this unexpected and, in our opinion, unnecessarily punitive, action, we will continue to work with the (Marijuana Regulatory Agency) toward what we hope is the prompt reopening of our facility.
Investigators said they found product in non-retail packaging inside 21 unmarked bins in a “safe room vault area” and witnessed employees violating “good manufacturing practices” by wearing “street clothes” and using cellphones while wearing sanitary gloves.
Some of the finished product that was identified as having already passed state safety compliance testing was never made available during the random sampling process, according to the Marijuana Regulatory Agency.
Ryli Kant, a spokesperson for MEDfarms, said the business is “frustrated” by the state response and doesn’t understand why regulators are portraying the company in such a negative light when there was no real safety concern.
Due to a packaging shortage, Kant said some of the chocolate edibles were in temporary containers, but had all passed testing.
This isn’t the first compliance issue for 3843 Euclid LLC. Its license was suspended for 14 days last summer after the state found employees were licking pre-rolled joints to seal them closed with saliva as its normal practice.
The edibles were dispersed to more than 40 stores across Michigan – including in River Rouge, Walled Lake, Bay City, Reading, Buchanan, Adrian, Ypsilanti, Portage, Lansing, Owosso, Wayne, Mount Pleasant, Hamtramck, Lapeer, Center Line, Hazel Park, Detroit, Morenci, Traverse City, Muskegon and Ann Arbor.
The recalled products include peanut butter cups, s’mores cups, banana cream cups and other varieties of marijuana-infused chocolate cups. To see the full list of products recalled at each dispensary, click here.
“It is imperative that our licensees follow the rules and laws while producing marijuana products,” Marijuana Regulatory Agency Director Andrew Brisbo said. “The (Marijuana Regulatory Agency) goes to great lengths to make sure that the marijuana product in the regulated industry meets established safety standards. Michigan’s marijuana laws and rules were established to provide safe sources of marijuana to Michigan residents, and it is important that we take action against those facilities that disregard the rules.”
The processor will have an opportunity to respond to the state’s complaint and request an informal compliance conference to discuss possible reinstatement of its license.
Policella said the business has requested an expedited hearing and hopes to have a meeting with the Marijuana Regulatory Agency within two weeks.
More on MLive:
10,000 marijuana-infused chocolate products recalled
Employees accused of licking pre-rolled joints
One man’s bloody entrance into marijuana industry
CannaCon offers glimpse inside complex marijuana industry
Marijuana samples collected like evidence from a crime scene
Michigan moves forward with plans to restrict Delta 8 THC
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