The Michigan Cannabis Regulatory Agency hit cannabis manufacturer Sky Labs with its fifth formal complaint over alleged marijuana industry rulebreaking. The action from the state attorney general’s office issued on Jan. 7 that suggests the company could lose its business permit.
Sky Labs, which produces the popular vape brands Bossy and Flight, is facing 10 rule violations in the CRA’s latest legal action against the company, ranging from not registering inventory in the state cannabis tracking system to illegally accepting 20 shipments of hemp concentrate from an unknown source.
The shipments in particular totaled 1 million grams, or 2,204 pounds, of hemp concentrate, which Sky Labs received between April 25 and July 15 last year. But the company doesn’t hold an industrial hemp-processor license; it holds an adult-use marijuana processor permit.
Sky Labs also appeared to have falsified some records entered into the state marijuana tracking system, Metrc. The CRA noted in its complaint that when it checked the licensed medical marijuana company that Sky Labs said supplied the hemp concentrate, the supplier denied that it had shipped any hemp to Sky Labs.
An employee of Sky Labs told a CRA staffer inspecting the business on July 15 that “he thought that the business could obtain and process hemp from a medical marijuana processor despite being told previously that Respondent needed a hemp processor-handler license to do so,” according to the complaint.
Sky Labs also couldn’t provide any certificates of analysis for the hemp shipments, and yet began combining the concentrate with other cannabis products to make new products, the complaint asserted. A follow-up inspection on July 24 found that the company also didn’t test any of the new products.
The lawsuit is the latest blow to Sky Labs, which could face fines or even lose its marijuana business license as a penalty for the 10 violations, the complaint noted. Sky Labs now has 21 days to request a hearing before the CRA metes out punishment. The company also could request a separate compliance conference, the complaint noted.
It’s far from Sky Labs’ first run-in with the CRA. The company was hit with four earlier complaints dating back to 2021, including a complaint last July that the company illegally used hemp powder from Colorado to make new cannabis goods at its Michigan facility. Sky Labs was also fined $20,000 four years ago for using banned chemicals and inaccurately reporting its vape inventory.
In the summer of 2023, Sky Labs was fined $100,000 by the CRA for failing compliance testing for its vape products, before the CRA issued a massive recall of its goods. That same summer, the CRA revoked Sky Labs’ medical marijuana processor license, leaving it only with an adult-use business permit.
The latest formal complaint includes 10 violations and may lead to the processor losing its cannabis business license. Read More
