Media Contact:
Lisa Cox
Missouri Department of Health and Senior Services

JEFFERSON CITY, MO– In order to ensure the health and safety of Missourians and the integrity of Missouri’s voter-approved regulatory program for cannabis, the Missouri Division of Cannabis Regulation (DCR) has revoked the marijuana manufacturing license of Delta Extraction, LLC, MAN000022. The revocation will take effect on Dec. 2, 2023.

On Aug. 2, 2023, DCR issued an Order of Immediate Suspension to Delta Extraction due to a credible and imminent threat to public health or public safety. Specifically, records in the statewide track and trace system indicated inversion of marijuana product at the facility as well as practices permitting marijuana product to enter the regulated market without being compliantly tested.

Delta Extraction challenged the Order of Immediate Suspension with the Missouri Administrative Hearing Commission, which is charged with hearing and deciding disputes relating to the regulation of marijuana facilities. In that matter and thereafter, Delta Extraction admitted to sourcing THC-A from outside the Missouri cannabis program, converting the THC-A to THC, and selling that THC within Missouri’s regulated marijuana market, a practice prohibited by Article XIV and Department regulations.

On Aug. 11, 2023, DCR issued a Notice of Pending Revocation to Delta Extraction due to significant and extensive violations of the rules and law applicable to marijuana manufacturing licensees.

On Aug. 14, 2023, DCR issued a recall on products sold to dispensaries and manufacturers by Delta Extraction due to the potential threat to public health and public safety that marijuana products containing THC sourced from unregulated cannabis pose. After investigation, DCR modified the recall on Oct. 20, 2023, to remove marijuana products it was able to determine had been derived exclusively from marijuana cultivated within Missouri’s regulated marijuana system.

On Sept. 1, 2023, DCR issued an Amended Notice of Pending Revocation, including additional significant violations of the rules and law applicable to marijuana manufacturing licensees.

On Nov.16, 2023, having given Delta Extraction opportunity to respond to or cure the deficiencies outlined in the Amended Notice of Revocation, DCR issued a Notice of Revocation.

“While Delta Extraction’s use of out-of-state cannabis in our regulated system has been well-publicized and is a critical issue, DCR also found numerous other violations of rules at this facility. The Missouri Constitution charges the Department with ensuring the safety of marijuana product and the safety and security of marijuana facilities through enforcement of rules. We must be clear on this: Businesses that choose to participate in Missouri’s marijuana industry do not get to decide which rules and which parts of Article XIV they want to follow,” said Amy Moore, director of the DCR.

The violations on which this revocation are based are as follows:

1. The Licensee failed to ensure that all marijuana product sold in Missouri originated from marijuana grown and cultivated in a licensed cultivation facility located in Missouri which is a violation of 19 CSR 100-1.100(4)(I) and cause for revocation pursuant to 19 CSR 100-1.020(3)(A)3.
2. The Licensee failed to ensure that all tetrahydrocannabinol (“THC”) in marijuana product is derived from marijuana cultivated by a Missouri licensed cultivator, which is a violation of 19 CSR 100-1.170(2)(E) and cause for revocation pursuant to 19 CSR 100-1.020(3)(A)3.
3. The Licensee failed to comply with seed-to-sale tracking requirements and falsified seed-to-sale tracking data, which is cause for revocation pursuant to 19 CSR 100-1.130(2)(E)2.
4. The Licensee failed to ensure all product in its facility is traceable in the statewide track and trace system at all times, which is a violation of 19 CSR 100-1.130(1)(E) and cause for revocation pursuant to 19 CSR 100-1.130(2)(E)2.
5. Due to falsification of tracking data, the Licensee failed to ensure all marijuana product from its facility is compliantly tested before transfer to a dispensary facility, which is a violation of 19 CSR 100-1.170(2)(B) and cause for license revocation pursuant to 19 CSR 100-1.020(3)(A)3.
6. Due to falsification of tracking data, the Licensee also packaged marijuana in a false and misleading manner, which is a violation of 19 CSR 100-1.120(1)(A) and cause for license revocation pursuant to 19 CSR 100-1.020(3)(A)3.
7. The Licensee failed to maintain security of marijuana product and the facility by failing to comply with required security measures and failing to maintain required security equipment, which is a violation of 19 CSR 100-1.090 and cause for license revocation pursuant to 19 CSR 100-1.020(3)(A). Specifically:
   1. The Licensee did not receive or failed to act upon the failure notification system required by 19 CSR 100-1.090(1)(C)9 that provides notice of a failure in the electronic video monitoring system;
   2. The Licensee failed to comply with 19 CSR 100-1.090(1)(A) by failing to have or maintain devices or a series of devices to detect unauthorized intrusion.
   3. The Licensee failed to comply with 19 CSR 100-1.090(1)(C)2 by failing to maintain remote access connection.
   4. The Licensee failed to comply with 19 CSR 100-1.090(1)(C)3 by failing to have electronic video monitoring of the facility in all required areas. For example: the Licensee was using unapproved areas of the facility, where electronic video monitoring had not been inspected or was non-existent.
   5. The Licensee failed to comply with 19 CSR 100-1.090(1)(C)8 by failing to store video camera recordings for at least sixty (60) days in a secure location or through a service or network.
   6. The Licensee failed to comply with 19 CSR 100-1.090(1)(D) by failing to have or maintain controlled entry to limited access areas, including maintaining records of entry for at least one (1) year.
   7. The Licensee failed to comply with 19 CSR 100-1.090(1)(E) by failing to have a method of immediate, automatic notification to alert local law enforcement agencies of an unauthorized breach of security at the facility.
   8. The Licensee failed to comply with 19 CSR 100-1.090(1)(H) by failing to have windows, within the limited access areas, designed to prevent intrusion.
   9. The Licensee failed to comply with 19 CSR 100-1.090(2)(E) by failing to take timely action to verify the security of marijuana product and the facility after receiving multiple unauthorized intrusion alarms for the office; office window open/closed, window tamper, office door open/closed, and motion within the office.
8. The Licensee failed to comply with 19 CSR 100-1.030(3)(A)4 (incorrectly cited in the Amended NOPR) and 19 CSR 100-1.090 as the Licensee did not request and receive DCR approval of changes to the use of spaces, which includes using the hallway for storage of marijuana product and using the area designated as the storage room for ethanol extraction. These areas were being utilized by the Licensee without the required notification, inspection, and approval by DCR to determine if the space is in compliance with 19 CSR 100-1, including critical security requirements.  This unauthorized use of spaces is cause for revocation pursuant to 19 CSR 100-1.020(3)(A)3.

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Cannabis Law Sessions at MJBizCon 2023: 

Elevating Cannabis Legal Expertise on the Global Stage

Las Vegas, Nevada – The International Cannabis Bar Association (INCBA) is proud to present the highly anticipated Cannabis Law Sessions, a series of expert-led sessions taking place at MJBizCon in just two weeks. This premier event is co-chaired by Jessica McElfresh, INCBA VP of Legal Education and Founder and Principal of McElfresh Law, Inc.; Steve Schain, Of Counsel, Smart Counsel; Corinne Celko, Managing Shareholder, Emerge Law Group; and Rachel Wright, MST, CPA, ABFinWright LLP. The sessions are set to bring together some of the brightest legal minds, industry leaders, and innovative thinkers in the cannabis sector, creating a platform for invaluable knowledge-sharing and networking. The Cannabis Law Sessions: Building Your Team will take place at MJBizCon from 8:00 am – 5:10 pm on Tuesday, November 28th at the Las Vegas Convention Center.

Attendees can earn six hours of Continuing Legal Education (CLE) and insights from over 30 speakers in law, banking, human resources, security, tax, receiverships, branding, intellectual property, legalization policy, ethics, and more in a diverse array of sessions featuring top industry experts and thought leaders. Attendees will have the opportunity to explore a wide range of topics, from the perspective of not only lawyers, but the wide range of professionals that are integral to a successful cannabis operator’s team. The Cannabis Law Sessions are expected to attract legal professionals, entrepreneurs, and cannabis enthusiasts alike.

Shahiedah Shabazz, Executive Director of the International Cannabis Bar Association expressed her excitement about hosting the Cannabis Law Sessions at MJBizCon: “This year, the Cannabis Law Sessions at MJBizCon will do something that is not usually done at legal conferences: we are bringing non-lawyer experts to the table and jointly presenting on the most important issues that a cannabis business is facing today. This year’s program is all about collaboration, and I am excited to experience the intersection of cannabis law with all of the other industries represented in our program. INCBA is committed to advancing the field of cannabis law and sharing our collective knowledge, and I am thrilled to be a part of this incredible event.”

The Cannabis Law Sessions at MJBizCon will feature a lineup of prestigious speakers from a diverse array of organizations and jurisdictions, including:

• Nicole Howell, Partner, Clark Howell LLP
• Cat Packer, Director of Drug Markets & Legal Regulation, Drug Policy Alliance
• Chelsie Spencer, Managing Attorney, Ritter Spencer Cheng PLLC
• Jason Rosell, Partner, Pachulski Stang Ziehl & Jones LLP
• Ashley Picillo, CEO, Point Seven Group
• Dotan Y. Melech, B.S.E, E.M.B.A, CEO, CTrust, LLC
• Khurshid Khoja, Founder, Greenbridge Corporate Counsel
• Jeffrey David, Shareholder, Call & Jensen
• Sasha Elkins, President, DopeHR
• Joshua Irwin Schiller, Partner, Boies Schiller Flexner LLP
• Annie Stoops, Associate, ArentFox Schiff LLP
• Matt Best, Co-Founder | Managing Partner, Joywave Consulting, LLC
• Paula Collins, Attorney, Law Office of Paula Collins, PLLC
• Neil Juneja, Managing Partner, Gleam Law, PLLC
• Karen Meshkov, Founder and CEO, KMesh Cann LLC
• Jerome Crawford, Chief Legal Officer, Pleasantrees Cannabis Company
• Samantha Gleit, Partner, Feuerstein Kulick LLP
• Lilach Mazor Power, Founder & CEO, Mazor Collective
• Terry Blevins, CEO and Lead Security Consultant, Armaplex Cannabis Security
• Amanda Conley, Founder, Conley Law
• Alicia Ashcraft, Managing Partner, Ashcraft & Barr | LLP
• Jason Horst, Managing Partner, Horst Legal Counsel, PC
• Peter Su, CTP, CCBP, CCCE, GRCP, GRCA, IDPP, ACBP, CBE, Director of Specialty Banking, Hanover Bank
• Shane Pennington, Partner, Porter Wright Morris & Arthur LLP
• Habib Bentaleb, Partner, Ragghianti Freitas LLP
• Mr. Robert Martin Tobiassen, J.D., LLM Taxation, Principal, Tobiassen Consulting + Solutions LLC
• Daniel Sheahan Miggins, Vice President, Hilco Global
• Sundie Seefried, CEO | President, Safe Harbor Financial

Throughout the event, participants can look forward to engaging panel discussions on crucial subjects like:

• “Protect Your Assets – Success in Cannabis Staffing, Compliance, Branding, and IP”
• “Crafting a Winning License Application”
• “Breaking Ground: The Potential Federal Rescheduling of Cannabis”
• “Protecting Privilege in the Huddle: Kovel and Related Attorney-Client Privilege Doctrines”
• “Cannabis Banking, Lending, the Safer Banking Act, and Distressed Workouts”

These sessions aim to equip attendees with practical insights and strategic approaches to successfully navigate the complex legal framework of the cannabis industry.

For registration and additional details, please visit the official Cannabis Law Sessions website: https://cannabislawsessions.incba.org/.

About the International Cannabis Bar Association (INCBA): The International Cannabis Bar Association is a global network of legal professionals dedicated to the practice, study, and research of cannabis law. With members from around the world, INCBA strives to advance cannabis law and policy through education, networking, and advocacy. Learn more about INCBA at [https://www.incba.org/].

In a statement, Yoko Miyashita, CEO of Leafly, said that while the firm is “very pleased” with the decision, the company remains “concerned that the Office of Cannabis Management’s stance towards third-party platforms deprives consumers and licensed cannabis retailers with important tools that help them navigate legal cannabis.”  

“We’ll continue to work toward sensible regulations and are hopeful for a solution that empowers small businesses and supports consumer education and choice, while still protecting the public health, safety, and welfare of the people of New York.” — Miyashita in a press release 

The order does not end the lawsuit, which alleges that state regulators unfairly targeted third-party platforms in a misguided attempt to restrict the way retailers may market or promote their business and products and prevent price-shopping consumer behaviors. The lawsuit alleges, that the adoption of these regulations by the state is both arbitrary and capricious and a violation of the U.S. and New York constitutions. 

Source:  https://www.ganjapreneur.com/new-york-attorney-generals-office-issues-stay-in-leaflys-challenge-on-third-party-marketing-ban/?utm_source=newsletter&utm_medium=email&utm_campaign=usda_awards_600k_grant_to_study_how_hemp_genetics_affect_cannabinoids_north_carolina_house_passes_consumable_hemp_and_kratom_bill_and_more&utm_term=2023-09-28