Missouri marijuana processor Delta Extraction has lost its final appeal, resulting in the termination of its business license after its role in a massive 2023 product recall.
According to the Missouri Independent, the state’s Administrative Hearing Commission this week upheld an earlier decision by state regulators who suspended Delta Extraction’s marijuana business license in August 2023, accusing the company of sourcing materials from an unlicensed facility.
The commission essentially agreed with the Division of Cannabis Regulation (DCR) that Delta Extraction violated Missouri law by infusing products with THCA sourced from outside the state.
In a 137-page ruling issued Tuesday, the Administrative Hearing Commission said the company had a “corporate culture of lax compliance with regulatory requirements,” the Independent reported.
An attorney representing Delta Extraction told the news outlet that the company had no comment about the lost appeal.
In late August 2023, a Missouri circuit judge dismissed a motion filed by Delta Extraction to halt the recall, which led to huge losses of sales and inventory for Missouri cannabis retailers and manufacturers, according to industry sources and court documents obtained by MJBizDaily.
The recall included roughly 62,000 marijuana products made by the Robertson-based company, including vape pens, cartridges and gummies.
In the recall notice, the DCR said the affected products “were not compliantly” logged into the statewide track-and-trace system operated by Metrc.
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