vertical bliss former owners of Kushy Punch brand

California Cannabis Edible Company Hit With $128 Million Dollar Fine For Engaging In Black Market Sales

A legal cannabis company was just hit with possibly the largest cannabis fine in California history. We first covered this story as it unfolded a few years ago. Now, the judgment gives a potential finish line to the topic. The Department of Cannabis Control (DCC) announced earlier this month that it won a large legal battle against cannabis operators that had businesses running both in the licensed regulated market as well as the black market. Vertical Bliss, who was operating the Kushy Punch brand at the time, is named in the suit.

3.3 Million Cannabis Gummies Sold On Black Market By Vertical Bliss

The suit alleged that Vertical Bliss (formerly operators of the Kushy Punch brand) had two facilities in California. One was licensed and located in Chatsworth, and one was completely unlicensed and located in Canoga Park, California. When authorities raided the illegal Canoga Park facility in 2019, they claim to have found evidence that Vertical Bliss had illegally produced more than 3.3 million cannabis gummies worth $64 million, as well as $21 million in illegal inventory.

It is also alleged that not only were gummies illegally sold by Vertical Bliss, but evidence was found that products made in the unlicensed facility were transferred over to the licensed facility. This put cannabis products that were made outside of the regulated system into the regulated system. The DCC clearly doesn’t want to see this happen as there could be issues pertaining to consumer safety and testing.

Now I did minor in math in college, but I’m not a professional mathematician. The article claimed 3.3 million gummies and not packs of gummies. At a $64 million dollar valuation and 3.3 million actual gummies, that produces an estimated cost of $19 and some change per gummy. That $19 figure seems more congruent with a 100MG pack of gummies to the final consumer. Keep in mind, most of the time when law enforcement and the legal system give out price estimations, they are wildly overinflated. I’ve dug for further clarification but have yet to find any at this time.

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