NJ Cannabis Regulators summarily suspend Molotium licenses after discovery of unapproved outdoor grow; board imposes multiple penalties
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Summary
The New Jersey Cannabis Regulatory Commission voted to summarily suspend Molotium’s cultivation and manufacturing licenses after staff discovered an unapproved outdoor grow; the board also approved multiple monetary penalties and training conditions for several licensees and a laboratory.
The New Jersey Cannabis Regulatory Commission voted on Feb. 12 to summarily suspend both the cultivation and manufacturing licenses of Molotium after compliance officers discovered the company had been cultivating cannabis at an unapproved outdoor location and transporting the harvested flower to its licensed facility for processing.
Director Chris Riggs told the commission that CRC compliance officers found the outdoor grow during an inspection on Feb. 3 and that administrative holds were placed on Molotium’s packages from Feb. 3–5. Riggs said staff later released downstream manufactured products after confirming laboratory tests and certificates of analysis showed no public health risk. “If we see something, say something,” Riggs said, urging industry partners to report suspicious activity.
Commissioner Laufer moved to summarily suspend Molotium’s cultivation and manufacturing licenses; Vice Chair Nash seconded the motion. The motion passed with Commissioner Mapp recused from that item. The board recorded the action as a summary suspension pending the commission’s continuing investigation.
The commission framed the suspension as necessary to protect public safety while minimizing market disruption. Riggs told the board staff pursued rapid testing and record review to determine which products posed any risk and which could return to shelves without hazard.
In related enforcement actions the board approved a series of fines and corrective conditions for other entities after staff presented investigation findings. Highlights of those actions include:
- Ohm Theory LLC: the board approved a combined penalty of $3,500 for multiple violations (selling expired products and failing to perform monthly inventory) and added a requirement for METRC training for all workers, with a six-month timeframe for completion; the motion passed unanimously of members eligible to vote.
- New Jersey Analytics (laboratory): the board approved a $25,000 penalty and a 14-day suspension of the lab’s testing license, suspended for six months on the condition that the lab complete specified METRC trainings for its employees; the motion passed after discussion of interstate transport of samples to an out-of-state testing site.
- Cream Dispensary and other retailers: the commission voted fines and, in several cases, METRC training requirements (Cream: $2,000 and training; MMD New Jersey Inc.: $2,000; Hashari LLC: $500 for visible paraphernalia; Toke Lane: $10,000 for effectuating ownership changes prior to board approval; BCAP: $3,500 for unauthorized delivery vehicles; Rush Buds: $1,000 for permitting an employee to work before receiving a CRC ID card). Each action was presented by chief counsel or the investigations director and adopted by vote.
Chairwoman Weyenu thanked the investigations and compliance teams for the rapid response. Several commissioners emphasized that, while downstream products were cleared of public-health risk by lab results, the commission must hold actors accountable for operating outside licensing rules.
Next steps: staff said the Molotium matter remains an open investigation; the summary suspension is an interim enforcement step while staff completes its review and prepares any further action.
