Colorado’s cannabis industry just saw one of its biggest shake-ups of the year. Attorney General Phil Weiser announced that three companies behind the well-known 1906 brand have been forced to exit the state’s regulated market and pay $400,000 in fines. The decision comes after years of complaints that 1906’s “Midnight Drops” sleep aid may have caused liver damage.
The settlement names Nuka Enterprises (Connecticut), Sima Sciences (Colorado), and Nuka Properties (Colorado) as responsible.
According to state investigators, Sima Sciences manufactured Midnight Drops from 2016 until 2024. By 2020, customer complaints were already pointing to possible health risks, but instead of pulling the product, the companies kept it on shelves.
A 2023 state health advisory flagged the herbal ingredient Corydalis for potential liver toxicity, yet dispensaries continued to stock the product. Regulators also said the companies failed to research the extracts used in Midnight Drops and did not properly notify retailers about the risks.
Under the settlement, the companies must stop operating in Colorado and can only return if they meet strict requirements. If they break the agreement, they face an additional $600,000 in penalties.
Not Just a Colorado Problem
This controversy goes beyond Colorado. Other states have also raised alarms:
Massachusetts: In 2022, the Cannabis Control Commission issued a precautionary bulletin warning about Midnight Drops with Corydalis rhizome extract. Regulators told consumers and retailers to be cautious due to reports of possible liver injury. While there wasn’t an immediate recall, the bulletin sparked an investigation into products containing the ingredient. Multi-State Complaints: Reports of adverse effects weren’t limited to one market. 1906 admitted that customer concerns from several states pushed them to reformulate the product in 2022, swapping Corydalis for Stephania. However, regulators say older versions still circulated after the supposed reformulation.
The issue points to a larger blind spot in cannabis oversight. Herbal extracts are often paired with THC to market products as sleep aids, stimulants, or wellness supplements — but these ingredients aren’t always tested for safety at scale. Add in inconsistent state rules, and consumers may not know whether what’s in their edible has been properly vetted.
What This Means for Consumers and the Industry
The Colorado case shows what can happen when companies fail to act transparently. Regulators said 1906 ignored complaints, failed to research ingredients, and didn’t give retailers the full picture. In the cannabis space, where products are often marketed as wellness solutions, that kind of negligence can have serious consequences.
It also raises bigger questions:
Should herbal additives in cannabis products be held to stricter safety standards? How can states coordinate better to keep questionable formulations off the shelves everywhere, not just in one region? And what role should consumers play in demanding more transparent labeling and ingredient disclosure?
For consumers, the takeaway is simple: always read labels, stay informed on advisories, and be cautious with products that make strong health claims. For the industry, this is a warning shot, cutting corners on safety and communication isn’t just risky, it can shut you out of an entire market.
1906 still sells hemp-derived THC products in dozens of states, but its Colorado exit highlights the regulatory gray areas that cannabis companies are navigating. When sleep aids marketed as safe end up raising red flags across multiple states, it’s a reminder that the cannabis industry has to take consumer health seriously, especially when blending cannabinoids with less familiar herbal extracts.
At Couch Lock’d, we’ll keep watching how this story unfolds and what it means for consumers, brands, and regulators nationwide.
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