In recent news, a Missouri-based medical cannabis company, Delta Extraction, LLC, found itself in a challenging situation as it lost its bid to halt a significant product recall. Last month, the company faced the recall of nearly 63,000 cannabis products, a decision made by the Missouri Division of Cannabis Regulation (DCR). The recall was initiated due to concerns regarding the tracking and sourcing of these products, which were not adequately monitored through the state’s seed-to-sale tracking system, METRC.
The DCR explained that it was unable to verify the origin of these products, casting doubts on whether they had been derived from marijuana grown within the state of Missouri and had passed the necessary quality and safety tests before reaching dispensaries. Importantly, the DCR stated that no adverse reactions had been reported by consumers of these products.
During an administrative hearing conducted regarding the recall, a manager for Delta Extractions, Jack Maritz, testified that the distillation process involved the use of hemp-derived THCa from out-of-state sources. Delta Extraction argued that previous regulations had permitted the use of such out-of-state hemp products. However, the state countered that recent regulations had clarified that such practices were not allowed.
The legal complexities surrounding this recall have escalated further as Delta Extraction faces a lawsuit from another medical cannabis company, Dark Horse Medicinals Missouri, LLC. Dark Horse had purchased a substantial amount, totaling $325,632, of the now-recalled products from Delta Extractions. In their lawsuit, Dark Horse alleges that it was unaware of the unlawfulness of the distillate within Missouri and that Delta had deliberately withheld this crucial information regarding the distillate’s source.
This legal battle underscores the importance of regulatory compliance and transparency within the rapidly evolving medical cannabis industry. As the situation unfolds, it serves as a reminder of the challenges and legal intricacies that can arise, even in states with established medical cannabis programs.