JUNEAU, Alaska — Alaska’s marijuana control agency voted to revoke the license of a marijuana edibles manufacturer that was accused of selling moldy products.
The state’s Alcohol and Marijuana Control Office board voted on Friday to revoke the license of Anchorage-based Frozen Budz and to fine the company $500,000, the Juneau Empire reported.
The vote marks the first time Alaska’s pot regulators have revoked a license.
“It’s a new industry, it’s a new process for us, so we haven’t anything of this magnitude,” said Mark Springer, a member of the marijuana board. “I really hope that the rest of the industry and people who are considering joining the industry will view this as the board and the office meaning business.”
Erika McConnell, director of the control office, said the company’s products will be seized from retailers across the state.
The control office’s action followed an investigation that was backed by testimony from former company employees.
The office found that Frozen Budz violated multiple state regulations relating to testing, improper labeling, operating out of compliance, producing unapproved products and failing to track the source of its marijuana. Frozen Budz’s manufacturing license was suspended Dec. 1 when the investigation began.
Frozen Budz owners did not return the Empire’s requests for comment, but co-owner Nick Neade previously said the company wasn’t “perfect,” but didn’t feel like it was being treated fairly during the investigation.
The company will have an opportunity to appeal the license revocation.
An administrative law judge will rule on the board’s action, and the judge’s decision will be brought back to the board for adoption, modification or rejection. If Frozen Budz is unhappy with the board’s final decision, the company’s owners can appeal to the Alaska Superior Court.
Information from: Juneau (Alaska) Empire