The Michigan Cannabis Regulatory Agency (CRA) has announced the closure of Michigan Investment 10 LLC’s adult-use processor license and the revocation of its medical processor license, along with a $2 million fine.
Michigan Investment 10's products are marketed under the brand “Muha Meds” and consist of vape cartridges, infused pre-rolls and gummies.
The final orders associated with these investigations – which were issued by CRA Executive Director Brian Hanna – follow an administrative proceeding arising from two formal complaints issued against the company.
The CRA found that Michigan Investment 10 LLC violated state laws and numerous administrative rules governing cannabis processor operations. The findings follow a contested case hearing conducted before an administrative law judge (ALJ) within the Michigan Office of Administrative Hearings and Rules.
“These were egregious violations, capped by the fact that their camera in the extraction room was pointed at a wall instead of the activity it was supposed to monitor,” said Hanna in a statement. “Michigan’s cannabis laws and rules are designed to protect public health and safety and ensure accountability throughout the regulated market. When a licensee disregards those requirements to this extent, the CRA will take appropriate action.”
The matter previously resulted in a summary suspension of Michigan Investment 10’s licenses on November 15, 2023.
The CRA discovered the alleged violations after the agency conducted onsite inspections and reviews of statewide monitoring system (Metrc) data. The CRA’s investigation revealed that the businesses incorrectly entered data in Metrc, failed to properly track large quantities of product in Metrc, had product that was missing Metrc tags and could not be traced to the legal market, and could not physically locate numerous products that were in their Metrc inventory.
The CRA’s complaints also allege that Michigan Investments 10 failed to follow proper sampling and testing procedures. Specifically, the CRA alleges that the businesses failed to produce proper quantities of product for sampling to be tested and failed to properly enter test results into Metrc. Further, product that was tested at different stages showed inconsistent results. The manager of the adult-use business admitted the business used product that failed testing to “circumvent testing” requirements.
While on-site, CRA agents observed that the businesses did not have properly locked and secured doors and that video surveillance was not fully functioning or located in the correct areas. Additionally, the CRA determined that the businesses were not properly monitoring waste areas and failed to provide standard operating procedures for waste upon request.
