California Vape Maker Discovered Making Each Legal and Illegal Goods — Cannabis Law Group’s Healthcare Marijuana Legal Weblog — October 20, 2019

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California Vape Manufacturer, Kushy Punch, has been accused of operating each legal and illegal cannabis operations, according to state authorities. On October three, state officials followed a tip to a warehouse in Canoga Park, exactly where a raid turned up an illegal manufacturing operation seemingly run by the nicely-identified state-licensed enterprise, Kushy Punch.

California Division of Customer Affairs investigators seized various prepared-for-sale items from the facility, like Kushy Punch packaged gummies, as nicely as about 7,200 Kushy Vape packaged disposable vaporizers. These items are estimated to carry a combined $21 million street worth.

If you want assistance with company licensing and permits for your cannabis company, our Southern California company marijuana attorneys are right here for you.

Kushy Punch Denies Incorrect-Undertaking
In a written statement, a lawyer for Kushy Punch confirmed the manufacturing facility and items in query do belong to Kushy Punch, but denied the enterprise is releasing illegal items for sale.

Rather, the statement claimed the cartridges in query had been all discovered in a box that was labeled for destruction. That is simply because the items had been no longer viable – their batteries had ceased functioning when becoming held in storage for two years or a lot more.

Anonymous Supply Claims Kushy Punch Runs Two Separate Enterprises  
An market insider acquainted with Kushy Punch, claims the state-licensed outfit is operating two facilities – 1 for licensed or above board items, and an additional particularly for the illicit industry.

The supply suspects that clean tested marijuana was funneled via the licensed Kushy Punch facility, then out into the legal provide chain. Though the cannabis that may well not have met with California’s rigid pesticide benchmarks was sent to the illegal kitchen, extraction lab and pen factory.

The informer also claims all of Kushy Punch’s black industry operations are going to the Canoga Park facility, and that “they are working with untested black industry oil that is heavy in pesticide.”

The cannabis company’s legal statement additional denies allegations of illegal activity. Rather it claims all Kushy Punch items endure comprehensive testing to be certain all items are protected, compliant and adequately authorized for sale.

Pictures taken for the duration of the initial investigation show the Kushy Punch facility apparently performing petro-solvent extractions, exactly where the THC (the active ingredient in cannabis) is concentrated by a technician. This practice is legal in California, so extended as it is accomplished with a permit. But the extraction process can also concentrate pesticides inside the cannabis, as nicely as the THC. Therein lies the apparent well being danger.

Investigations are Ongoing
Investigators discovered the San Fernando Valley facility appeared to be working with extracts each in disposable vape pen cartridges as nicely as reputable-searching THC meals items. When raided, the facility was holding thousands of boxes of Kushy Punch packaged edibles, seemingly prepared for sale and customer consumption.

Bureau of Cannabis Handle (BCC) spokesperson, Alex Traverso, mentioned that when the investigation is nonetheless ongoing, the initial raid saw “investigators confiscate thousands of illegal cape carts worth millions of dollars.”

Legal Implications
A quantity of cannabis manufacturing businesses have existed each pre- and post-licensing eras. It really should come as small surprise then that a lure exists for some businesses to seek company operations on each legal and illegal sides of the isle. What will be fascinating to see play out, is just what will take place if a massive, above board player is discovered to be dabbling in each arenas. It is extremely probably that really should a licensed cannabis enterprise engage in illegal company activity, that these licenses likely will not be held for a great deal longer.

About Cannabis Law Group
The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary businesses, sufferers and these facing criminal marijuana charges. Get in touch with us at 714-937-2050.

Further Sources:
Bureau of Cannabis Handle

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