Two Mississippi medical cannabis companies are set to receive over $6.3 million due to financial losses stemming from a significant product recall. The Mississippi Independent Cannabis Association (MICA) reports that Hattiesburg-based dispensary FerrCann, Inc. and Brookhaven cultivator SADUJA, LLC will benefit from these funds following an administrative hold on products tested at Rapid Analytics.
Investigation into Rapid Analytics
The Natchez-based lab, one of only two facilities in Mississippi sanctioned to test cannabis products, was investigated by the state health department after allegations surfaced regarding faulty practices. Reports indicated potential violations related to pesticide usage and the presence of mycotoxins during product testing.
As a result of the investigation, dispensaries were instructed to halt sales of any products tested by Rapid Analytics until further retesting could be conducted by state regulators. With approximately 70 percent of the state’s medical cannabis products undergoing testing at this facility, both dispensaries and cultivators faced significant challenges as the retesting process extended for over a month.
Judicial Compensation
The judicial system has now recognized that at least two entities are entitled to financial compensation due to setbacks incurred amid the investigation of Rapid Analytics. “We are thrilled to have received the judgment for two of our members who have endured the adverse impacts of the Rapid Analytics Recall,” stated Pete Stokes, MICA co-founder and board member. He emphasized that this ruling underscores the importance of MICA while reaffirming its commitment to advocating for the interests of its members.
Support for Affected Businesses
MICA encourages all locally-owned cannabis businesses affected by the Rapid Analytics incident to utilize the resources and support offered by the association to pursue remedies for their losses. Furthermore, the Mississippi State Department of Health has initiated steps to revoke the license of Rapid Analytics, marking a significant regulatory response to the issues identified during the investigation.