The Michigan Cannabis Regulatory Agency (CRA) has immediately suspended the hemp processor-handler license held by Loud Labs of Michigan LLC and issued a notice of intent to revoke the license following an investigation into the company’s possession of cannabis products containing delta-9 tetrahydrocannabinol (THC) above the legal hemp threshold.
Loud Labs (License no. HPHL-000047) was licensed to operate a hemp processor-handler business.
CRA staff conducted a compliance inspection at the business on March 25, 2026, and – during the inspection – observed multiple cannabis products and reviewed certificates of analysis indicating that certain products contained delta-9 THC concentrations exceeding 0.3 percent.
The CRA subsequently conducted an inventory audit on May 18, 2026, during which the agency identified multiple products for which corresponding laboratory certificates of analysis reported delta-9 THC concentrations above 0.3 percent.
During the May 18, 2026 audit, CRA staff identified, among other products, the following products and corresponding COAs indicating delta-9 THC concentrations greater than 0.3%.
For example, the CRA found a jar of concentrate tested on October 29, 2024, by FESA Labs, with a reported delta-9 THC concentration of 92.84%.
The company also found A jar of concentrate tested on September 28, 2024, by Bluebonnet Labs with a reported delta-9 THC concentration of 21.38%, as well as a jar of concentrate tested on November 13, 2024, by California Ag Labs with a reported delta-9 THC concentration of 20.35%.
Topical transdermal patches tested on October 31, 2025, by Chem History Labs were found to have a reported delta-9 THC concentration of 0.59%.
Other topical transdermal patches had a reported delta-9 THC concentration of 0.45%.
The CRA alleges that Loud Labs violated Section 12(1)(a) of the Industrial Hemp Research and Development Act (IHRDA), which provides for suspension of a licensed processor-handler when the licensee intentionally possesses cannabis containing more than 0.3 percent delta-9 THC on a dry-weight basis.
Based on those allegations, the CRA suspended Loud Labs’ hemp processor-handler license effective immediately and has also provided notice of its intent to revoke the license. Under the applicable provisions of the IHRDA, a license must be revoked if, following notice and an opportunity for a hearing, the CRA determines by a preponderance of the evidence that the licensee violated the relevant provision.
The allegations contained in the CRA notice remain allegations unless and until established through the administrative process.
