MD Processor Fined $150,000 For Not Following Regulations
CuraLeaf over the last few years as seen fines from other state Regulators, back in 2019 they were fined $250,000 in MA for not permission for a change of ownership (10%) as outlined in the regulations.
On Thursday, 08.27.2020, The Maryland Medical Cannabis Commission (MMCC) issued a consent order Case 19-00358 to Curaleaf Holdings, Inc (CureaLeaf, Inc) by not following regulatory requirements on the number of processor licenses you can own.
CuraLeaf Corporate is the majority owner and shareholder in CLF MD Processing, LLC (P-17-00008). In January 2019 CLF MD Processing entered a manged agreement with another processor (P-18-00003). In July 2019 and updated regulation prohibited ownership interest in or control of more than one processor.
The MMCC met with CuraLeaf in May 2020 and it was agreed that they would divest interest in P-18-00003 by July 2, 2020. That did not happen, so the MMCC fined CuraLeaf $150,000 and stated that they have to complete the transaction by October 12, 2020. If they don’t the MMCC can increase the penalty up to $400,000.
It is important to undestand the regulations of the state you operate in and make sure your compliance operations are in accordance with the regulations.