Michigan's Cannabis Regulatory Agency (CRA) today revoked the medical cannabis grower license along with the medical and adult-use cannabis processor licenses of Candid Labs, which does business in the state under the name Layercake Farms.
“When licensees don’t act within the laws and rules that govern the cannabis industry, we must act swiftly to protect the public,” said CRA Executive Director Brian Hanna. “By revoking these state operating licenses, we are holding true to the CRA’s promise that egregious actions jeopardizing public health and safety will be taken seriously and have consequences.”
The licenses will not be renewed, reinstated, reissued, or reactivated – limited or otherwise – at any future date. The businesses’ owner, Ramon Hana, will be permanently prohibited from being employed or working in any capacity at a licensed marijuana business in the state of Michigan. Hana is the sole owner of other licensed marijuana businesses in Lansing (AU-P-000328 and PR-000312). Hana is prohibited from seeking renewal of those licenses and must close those businesses before the licenses expire.
Candid Labs voluntarily destroyed all marijuana products in the statewide monitoring system (Metrc) inventory of its co-located medical and adult-use processor licenses during the week of May 28, 2023, with pre-approval and on-site supervision of CRA staff.
On October 6, 2022, CRA staff visited Candid Labs’ medical grower facility to discuss the malfunctioning of its video surveillance system. When CRA staff entered the video room, they observed that 38 cameras were inoperable and showing black screens. CRA staff observed some video footage, but the footage cut to a black screen numerous times for long periods of time. Candid Labs stated that they had a rat problem and that rats had chewed through the video wires.
While on the premises, CRA staff also observed Candid Labs’ medical and adult-use processor business that is co-located on the same premises. During this visit, CRA staff observed numerous examples of non-compliance with Michigan marijuana regulations.
CRA staff observed five tall, cylindrical glass jars with green lids each labeled with “Labyrinth Xtracts Ultra Fine Distillate Oil” and a “Hempire State Growers Hudson Valley New York” sticker inside a yellow storage trailer. CRA staff observed that the tall cylindrical jars were filled to the top with what appeared to be marijuana distillate and were without Metrc tags.
CRA staff also reviewed Candid Labs’ submitted floor plan for licensure and discovered that the yellow storage trailer was added to their medical marijuana processor facility, and that they failed to have the yellow storage trailer inspected by the CRA or receive CRA approval prior to bringing it onto the facility grounds.
Several violations were found inside a trailer used by Candid Labs to process marijuana distillate. While inside the processing trailer, CRA staff observed four pots containing what appeared to be marijuana crude and observed nine tall cylindrical jars of what appeared to be marijuana distillate without Metrc tags. Because the marijuana crude and distillate lacked Metrc tags and could not be tracked in the statewide monitoring system, CRA staff asked Candid Labs’ employees to confirm the source of the products. Candid Labs’ employees maintained that the products were made from biomass kept on the licensed premises.
CRA staff subsequently requested that the marijuana crude, distillate, and biomass undergo testing to determine their chemical profiles. Contrary to Candid Labs’ previous explanation – and as more thoroughly described in the formal complaints – the results of the testing revealed that the biomass could not have been used to create the marijuana crude or distillate found in the trailer. When asked by CRA staff, Candid Labs was unable to provide a credible explanation for this discrepancy.