Ohio regulators allege two multi-state operators (MSOs) violated state licensing rules, according to a report by Jackie Borchardt in the Cincinnati Enquirer. The allegations involve New York-based Acreage Holdings and Arizona-based Harvest Health and Recreation.

  • Ohio requires dispensaries to be open for a year before they make significant ownership changes. Regulator, the Ohio Board of Pharmacy,s allege Greenleaf Apothecaries, a partner of Acreage, violated state rules for ownership changes and/or gave false information on its applications.”
  • A lawyer for Greenleaf called the allegations “meritless.”
  • In an email to WeedWeek, an Acreage spokesperson said the company is fully compliant in all states where it operates, and transparent with regulators.
  • Separately, the state board alleges Harvest “committed fraud, misrepresentation, or deception in furnishing information” in overstating in applications how much of the company was black owned, which gave the company a leg up over competitors who scored higher.
  • Each company received notices in June telling them they will have the opportunity to argue their case. The reporter obtained the notices through freedom of information requests.
  • Arizona-based Harvest unsuccessfully attempted to block the release of its notice in court. Harvest argued its would reveal proprietary information about its “unique way of organizing an LLC” to qualify for the minority owned and controlled designation “with ownership that is only minimally from an economically disadvantaged group.”
  • A Harvest spokesman said it is aware of the investigation and is cooperating with the state.
  • It’s not the first time the two companies’ tactics have made news. Acreage is under investigation in Massachusetts. (Again, it says it is compliant.)
    Boston Globe
  • In April, the Philadelphia Inquirer reported Harvest is under investigation in Pennsylvania.
  • Harvest did not immediately return a request for comment about the Pennsylvania investigation.

Over at ????WeedWeek Canada, Jesse devotes much of the issue to the CannTrust scandal.

The producer grew 12 tons of weed in unlicensed rooms. The biggest scandal in Canada since legalization, itand has rocked the industry.

We also discuss Cannit with Jesse on the podcast episode dropping this afternoon.