Regulators in Pennsylvania revoked one of the state’s medical cannabis cultivators permit for allegedly violating the production and security regulations.
Roughly a month after a surprise state inspection, the regulators found numbers or violations that raised concerns against Agrimed industries that some plants may have been sold to the black market, according to The Philadelphia Inquirer. Given 30 days to appeal the state’s decision, reportedly entered into a management service agreement with Arizona-based Harvest.
A spokesperson from Harvest did not return requests for comments.
According to the cease-and-desist letter issues in early July, Agrimed, which began operating in February 2018, was growing Cannabis plants. However, its processing equipment was not operational, making the company unable to ship MMJ products to dispensaries. Moreover, the company wasn’t able to produce records establishing what happened to marijuana it grew. It also couldn’t produce security footage as required because it’s security cameras were often non-functional
Under the order, Agrimed was allowed to continue the cultivation of its strains. However, the company was placed on embargo from removing anything from the plants without a department inspector on hand observing and was not allowed to deactivate its security equipment.
The company will suffer due to the cease-and-desist order but will eventually be able to recover in a short period, analysts said. Requirements should be met when they are producing the so-called medicinal drug.
The company should record their distribution of cannabis and would likely maintain its security features active on the whole span of the operation. Nonetheless, this will most likely cause the company to return to its original state and with better functioning facilities.
Since the company was one of the 12 companies that was granted the permit to grow the said medicinal drug. They can bounce back and recover their lost permits and licenses with the proper procedure.