The Michigan Cannabis Regulatory Agency (CRA) has filed yet another formal complaint against Sky Labs LLC, an adult-use cannabis processor located in Mt. Morris, for its receipt and handling of more than one million grams (equal to 2,204 pounds) of product identified as “Isolate (hemp concentrate).” The complaint alleges 10 violations that also include missing and mis-time-stamped security footage, lack of required product testing, noncompliant sources for product purchases and transfers, and inaccurately entering product data into the state monitoring system (Metrc).
According to the formal complaint, manifests in the statewide monitoring system show that Sky Labs accepted “more than 20 transfers exceeding a total of more than one million grams of product identified as ‘Isolate (hemp concentrate)’ from a state licensed medical marijuana processor between April 25, 2024, and July 15, 2024.”
The medical marijuana processor identified on the manifest told the CRA that “it does not have a hemp processor-handler license and did not transfer isolate to [Sky Labs] or any other business,” per the CRA complaint.
Sky Labs’ employee, identified in the complaint a “K.S.,” told the CRA “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,” the compliant stated.
During a site visit to Sky Labs in July, CRA discovered that, “according to Metrc, [Sky Labs] received a 220,000-gram package of isolate that morning from the same medical marijuana processor referenced above.” Following the site visit, “a CRA regulation agent spoke to C.W., a manager with [Sky Labs]. C.W. stated that [the company] received a shipment of pure THCA on July 27, 2024, and placed it in the ovens to decarboxylate,” according to the complaint.
As of Jan. 9, Sky Labs has yet to produce the certificates of analysis requested by the CRA on the hemp concentrate products transferred.
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