NY, NY
NY OCM orders a quarantine of products suspected of inversion

What happened: New York state has ordered cannabis processor Omnium Health to quarantine 284 different products, including 200 made in partnership with Stiiizy and Mfused.

The order comes amid a statewide investigation into allegations that cannabis producers have been smuggling products from outside of New York into the state to sell in licensed dispensaries. 

Allegations of inversion appear to be confirmed by an independent investigation from the New York Medical Cannabis Industry Association.

What they’re saying: "The issue, as identified by the state, is related to paperwork and clerical errors and is expected to be rectified in very short order. We are actively collaborating with the Office of Cannabis Management, and they have provided us with a clear pathway to resolution. We fully expect all products to be back on shelves shortly," said the April 24 letter that Omnium Health sent to its clients announcing the quarantine. 

Omnium Health, who was not identified by NYMCIA, said they believe their products will return to shelves once the investigation is concluded.

Stiiizy did not respond to emailed requests for comment. 

When reached for comment a spokesperson for Omnium Health confirmed the validity of the letter and provided an unsigned statement on behalf of the company.

“All of our products are sourced exclusively from New York-grown cannabis and remain fully compliant within the state’s regulated supply chain,” said Omnium Health in a statement to us. 

“We are actively working with the OCM team and have provided all requested documentation. We look forward to a prompt review so that our products can return to retail shelves without delay.”

And: ”The investigation is active and OCM is taking measures to ensure that the investigation is thorough in scope — which requires following every thread to where it leads,” OCM spokesperson Taylor Randi Lee said in an emailed statement. 

“According to compliance protocols, OCM issued a quarantine order requiring supply and retail licensees to isolate the identified products while OCM’s investigation continues. If there is any discovery that requires additional notifications or safeguards, OCM will communicate these without delay.”

More evidence of inversion: Separate from OCM’s investigation, the New York Medical Cannabis Industry Association released the results of their own investigation on April 25.

The NYMCIA includes the nine registered organizations which make up the medical cannabis market. The announcement about the investigation included a call on the state to implement BioTrack seed-to-sale tracking.

"It's a sign of the failure of seed-to sale-tracking," said NYMCIA Spokesperson Ngiste Abebe. "We've been waiting for years to implement BioTrack and there is clearly still not adequate implantation of seed-to-sale tracking

Five different prerolls from Heady Tree and Runtz were lab-tested and the analysis indicated that they contained bio markers, such as certain types of pollen and metals that are more often found along the West Coast than in New York.

"Inversion of just one product is a failure of the regulatory system," said Abebe. "Even clerical errors in seed-to-sale tracking are very problematic."  

-ZH

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