California cannabis and CBD product manufacturer Kushy Punch has had its cannabis license revoked after it was found to have been operating out of an unlicensed facility, Marijuana Business Daily reports.
Regulators said they seized nearly $21 million worth of cannabis products during a raid at the company’s Canoga Park facility last month after being tipped off about illegal cannabis activity there.
Kushy Punch attorney Eric Shevin said the company was disappointed by the move.
“The More Agency, as the sole owner to all rights to the recipes, formulas and intellectual property pertaining to Kushy Punch, is saddened by the license revocation.… We have witnessed what has been termed a cannabis extinction event, as many operators are unable to withstand the licensing delays, costs and onerous taxes that continue to be a barrier for historical brands like Kushy Punch to survive.” — Eric Shevin, legal counsel for Kushy Punch, via MJBizDaily
Regulators were at first concerned that cannabis and vape products were being diverted to the unregulated marketplace but, according to Bureau of Cannabis Control (BCC) spokesperson Alex Traverso, Kushy Punch was only manufacturing and storing vape pens in the unlicensed facility, not selling or distributing them.
“Manufacturing, distributing or selling cannabis goods without a state license or at a location that is not licensed is a violation of state law,” California regulators warned.
Kushy Punch representatives said that the vape cartridges discovered by BCC were scheduled for destruction and were not going to be distributed.
The action comes amid an ongoing national vape crisis that has been tied by the CDC to illicit cannabis vape cartridges — specifically, to the use of vitamin E acetate as a cutting agent for the cartridges.
As of November 20, 2,290 vaping-related injuries have been reported in 49 states (all except for Alaska) and 47 individuals have died.
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