Curaleaf Massachusetts Inc. received a $250,000 fine from the Cannabis Control Commission. This is the largest fine a business in the cannabis industry has received. The fine was a result of Curaleaf failing to report and attain approval for a merger with their Wakefield-based company Curaleaf Inc.
Curaleaf Inc. hoped to take the company public on the Canadian Securities Exchange. Without the fine, Curaleaf would be facing a long process that would result in the suspension or revoking of their license. The fine is a result of a settlement reached by Curaleaf and the Cannabis Control Commission.
Curaleaf states there wasn’t an official process for merging companies or changing ownership which caused problems. However, Commissioner Shaleen Title didn’t see that as a valid excuse for not reporting the activity because the absence of a form doesn’t make the permission optional.
Massachusetts is in the process of changing who oversees their budding cannabis industry. Companies can expect to see changes in pesticide regulations and license ownership. Under current regulations, no one is allowed to own more than three licenses of the same type. However, companies have found ways around those rules by using intermediaries, suspicious management contracts, or having loan agreements. M3 Ventures also received a $50,000 fine for using banned pesticides.