In a decisive move that underscores the Michigan Cannabis Regulatory Agency’s (CRA) intensified efforts to uphold industry standards, Sky Labs LLC, a cannabis processor based in Mount Morris, has officially lost its license to operate. This permanent revocation comes after a prolonged history of serious regulatory violations, signaling a new era of strict enforcement in the state’s burgeoning marijuana market.
The CRA announced on Monday the finalization of the nonrenewal of Sky Labs’ processor license. The company had initially sought to contest the decision through a hearing but ultimately withdrew its request, making the license revocation immediate and official. This action effectively halts Sky Labs’ ability to legally participate in Michigan’s cannabis industry.
Sky Labs has been a perennial fixture on the CRA’s list of sanctioned businesses. Records show a consistent pattern of infractions dating back to 2021, ranging from the alarming use of banned substances like melatonin in edibles and failing crucial product safety tests, to selling untagged marijuana and maintaining woefully inadequate surveillance practices. The CRA has levied more than a dozen formal complaints against the company, spanning both its adult-use and former medical licenses.
Despite accumulating over $130,000 in fines and agreeing to various corrective measures – including monthly audits, surrendering its medical license, and overhauling its operating procedures – Sky Labs’ compliance issues persisted. The most recent complaint, issued in late 2023, highlighted ongoing problems with inaccurate product tracking.
Under Michigan state law, cannabis companies must demonstrate good standing to renew their licenses. The CRA concluded that Sky Labs had failed to meet these essential requirements, deeming the business “not eligible, qualified, or suitable” to continue operating within the industry.
This high-profile revocation serves as a stark warning to other licensees. In recent months, the Michigan CRA has visibly ramped up its enforcement actions, demonstrating a clear commitment to weeding out bad actors and protecting consumer safety and market integrity. This crackdown has seen increased scrutiny across the board, from issues like cartoon-labeled edibles and unsafe cultivation facilities to illicit product sourcing and inadequate tracking. The message from the CRA is unequivocal: compliance is not optional, and the consequences for persistent violations are severe. As the Michigan cannabis market matures, expect the CRA to continue its assertive stance, ensuring that only businesses committed to responsible and legal operations remain.
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