A Michigan cannabis company has been ordered to shut down permanently after an investigation by regulators found that the company shipped its products to Massachusetts, discrepancies in their inventory, unlabeled products at their facility and other violations.

Ground Control Michigan, LLC, which operates as GCM Waypoint, must surrender its license by next week as part of a consent order with the state Cannabis Regulatory Agency (CRA), to which the company waived its right to a hearing and did not contest the claims.

In the complaint, the CRA found that a GCM employee personally transported 249 cannabis products from Michigan to Massachusetts for a cannabis conference, in violation of state law. In a statement, CRA executive director Brian Hanna said the agency was assisted by Michigan State Police and Massachusetts Cannabis Control.

“The conduct uncovered through this investigation was egregious and cannot be tolerated in Michigan’s regulated cannabis market. Those who engage in conduct of this nature should expect the CRA to respond decisively and pursue the strongest actions available under the law.” – Hanna in one press release

During an investigation at the GCM facility, investigators found several inventory discrepancies, including 32,250 heat cartridges that had previously been seized by state police but labeled as received in the business’s inventory; 360 boxes of vape cartridges that were found to be empty boxes; and two unlabeled 1-liter distillate bottles, according to complaint. Investigators also noted “hours and even days” of lack of surveillance at the facility.

The GCM investigation began in March.

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The San Francisco, California Board of Supervisors on Tuesday approved a DIRECTION to allow cannabis cafes, CBS San Francisco reports. The ordinance will allow establishments to also serve food and drink and provide live entertainment.

In a statement after the decision, Board President Rafael Mandelman, the author of the ordinance, called the approval “a real tool” to help the city’s cannabis businesses “compete and grow.”

“Cannabis cafes are part of this city’s recovery, along with our entertainment precincts, neighborhood activation and free concerts, and today’s vote ensures our legal vendors are not left behind.” – Mandelman, in a statement, via CBS San Francisco

San Francisco is the first Bay Area city to give final approval to cannabis cafes after a bill passed by state lawmakers in 2024 that allows localities to allow businesses.

Under the ordinance, cannabis retailers will be allowed to prepare and serve food and non-alcoholic beverages for consumption on their premises. The ordinance also creates a cannabis cafe permit, allowing spaces where cannabis consumption can be offered alongside food, drink and entertainment. Cafes will only be allowed to sell cannabis for on-premise consumption and will have to follow the same health codes and California Retail Food Code standards as other food establishments.

According to the ordinance, smoking will not be allowed and businesses will have to follow certain ventilation and signage rules. There are also ID requirements at the door for patrons.

The measure still requires final approval from Mayor Daniel Lurie.

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San Francisco supervisors have advanced a proposal that would allow existing cannabis lounges to serve food and soft drinks and host live entertainment. NBC Bay Area reports.

The Board of Supervisors approved the ordinance 7-4 on its first reading Tuesday, with a final vote expected next week, according to the report. If passed, the measure would allow the city’s cannabis dispensaries to expand their offerings under a state law authored by Assemblyman Matt Haney (D).

Supervisor Rafael Mandelman, who introduced the ordinance in the spring, said the policy could help the city’s licensed cannabis operators develop more sustainable business models while also attracting tourism.

“Amsterdam does a lot of tourist business and has a lot of benefits from cannabis cafes,” Mandelman said, according to the report.

“San Francisco is not Amsterdam; there may be elements of that that we will see here, and again, that may be part of our recovery.”

William Dolan, CEO of Hyrba dispensary in the Sunset District, said the proposal would advance a nearly decade-long plan to open a community cannabis space in the Mission District, where customers could legally consume cannabis while getting food, snacks or coffee.

The ordinance has drawn opposition from public health advocates and some city officials over concerns about indoor smoking. Supervisor Myrna Melgar, who voted against the measure, said the proposal “sets back our public health goals,” while the American Smokers’ Rights Foundation warned that workers and recreationists could face increased exposure to indoor air pollution.

Mandelman said Tuesday’s vote suggests the proposal is likely to pass final reading.

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