Curaleaf and Ascend, two multistate cannabis companies with operations in Central Massachusetts, have been fined a combined $165,000 by the state’s Cannabis Control Commission for regulatory violations.
Curaleaf, a Connecticut-based cannabis company operating in 17 states and nine countries, received an $80,000 fine for violations of the state’s pesticide rules at a former cultivation facilities in Webster and Amesbury and failure to maintain proper personnel records. Curaleaf has agreed to a six-month probationary period where any substantial violations of regulations would constitute grounds for suspension or revocation of its license to operate.
Ascend, a New York-based company with operations in five states and a cultivation facility in Athol, received an $85,000 fine for failure to comply with the state’s seed-to-sale tracking system. The company agreed to a 12-month probation period and twice-monthly audits of its inventory.
Curaleaf
CCC’s investigation found a pesticide used for exterior lawn maintenance in 2020 made its way into Curaleaf’s Amesbury facility, resulting in two plant samples failing pesticide tests. The failure resulted in the company notifying the CCC and searching the building for unauthorized chemicals, leading to the discovery of additional unauthorized insecticides and plant growth regulators.
A follow-up inspection by CCC and the Massachusetts Department of Agricultural Resources found additional pesticides on site, with a wipe sample analysis detecting unapproved pesticides inside the Amesbury facility.
Similar issues were detected in the company’s Webster cultivation facility; in 2021, two test samples showed the presence of another unapproved chemical, which CCC linked to several issues with exterior gaps in the facility and doors being propped open during harvesting.
As part of the investigation, CCC found the company had failed to include two written warnings to employees over improper pesticide in the employee’s personnel files.
In a statement to WBJ, the company said it has taken efforts to ensure similar violations won’t occur again and noted all contaminated products were destroyed before reaching shelves.
“Shortly after this issue was identified in Amesbury, Curaleaf retained an independent environmental firm to conduct a remediation of the facility to ensure no pesticide residue remained,” the statement reads. “We also added additional controls to prevent inadvertent cross-contamination on the premises, with updated procedures and training for team members. These practices have been applied to our facilities throughout the country, as the health and safety of our patients and customers remains our number one priority.”
This most recent fine comes after Curaleaf was fined $250,000 by CCC in 2019 for failing to disclose a change of ownership. The company has been fined by at least four other state cannabis agencies since 2020, including a $150,000 fine in September 2020 for violations of Maryland’s rules limiting the amount of licenses one company can possess, according to Law360.com.
Curaleaf paid $50 million as part of an 2018 agreement with Salem-based Alternatives Therapies Group to purchase the 53,600-square-foot Amesbury facility, citing the high demand for cannabis flower at the time. In 2023, the company announced it would close the Amesbury facility as part of a nationwide consolidation of its operations.
In addition to the company’s Webster cultivation and processing facility, Curaleaf operates dispensaries in Oxford, Hanover, Provincetown, and Ware. The multinational cannabis company, considered one of the world’s largest, was formerly based in Wakefield but quietly moved its headquarters to Connecticut earlier in 2024.
Ascend
Ascend’s regulatory violation dates back to August 2022, when an Ascend employee emailed CCC to notify the agency of inventory discrepancies at the company’s Boston dispensary.
An incident report filed by the company noted Ascend had failed to conduct monthly audits for several months in a row and syncing errors between the company’s point-of-sale system and the state’s tracking system resulted in further inventory discrepancies.
Further investigation by CCC found additional inventory problems, as well as violations of security regulations involving unlocked doors and a lack of proper visitor registration.
The company did not immediately respond to a request for comment from WBJ. This fine was the first Ascend has received in Massachusetts.
Ascend in late summer terminated its CEO and CFO amidst an attempt to address performance challenges, according to CFOdive.com.
In addition to its Athol cultivation facility and Boston dispensary, Ascend operates dispensaries in New Bedford and Newton.
H/T: www.wbjournal.com
