California regulators revoke K.U.S.H. Collective’s cannabis business license

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California regulators on Wednesday revoked the business license of K.U.S.H. Collective and issued a consumer advisory for all its products.

As part of its enforcement actions, the state Department of Cannabis Control also ordered an “embargo” on nearly 200 stock-keeping units (SKUs) produced by K.U.S.H. (Kinder Understanding Sensitive Healing).

“In the interest of public health and safety, the DCC is implementing an embargo on all cannabis products manufactured by K.U.S.H. Collective and is issuing a consumer advisory to alert cannabis consumers to the risks posed by these products,” the DCC said in an announcement.

‘Adulterated or misbranded’ products

The DCC said that during its investigation into K.U.S.H. Collective, the Van Nuys-based company failed to show that its cannabis products were cultivated, processed, manufactured, packed and properly stored at its licensed facility, a requirement under California’s adult-use marijuana law.

“The Department has probable cause to believe the products subject to the embargo may be adulterated or misbranded and therefore, may pose a risk to cannabis consumers,” the DCC added.

David Shin, who is listed as the owner of K.U.S.H. in DCC documents, did not immediately respond to MJBizDaily requests for comment.

Shin and K.U.S.H. Collective were highlighted in a June report by the Los Angeles Times and WeedWeek that detailed the presence of pesticides in several products being sold in California, the world’s largest regulated cannabis market.

Previous K.U.S.H. issues

In July, the DCC issued mandatory recalls on two Circles-branded products manufactured by K.U.S.H. that contained the banned greenhouse pesticide chlorfenapyr.

In September, regulators suspended K.U.S.H.’s provisional business license and directed the company to cease all commercial cannabis activities – including the delivery or transportation of any marijuana product.

On Aug. 28, regulators were denied access to the K.U.S.H. facility during a compliance inspection, according to the suspension notice.

During a follow-up inspection on Aug. 30, the DCC observed more than 121 pounds of fresh, frozen cannabis, 2.8 pounds of dried cannabis flower and 52 pounds of 1-gram Cloud vape cartridges that were not identified and lacked proper labeling.

Other infractions included:

  • A failure to follow track-and-trace product requirements.
  • The subletting of a section of the K.U.S.H. manufacturing area to an unlicensed operator.
  • A failure to provide a live video feed or surveillance of its operation. The DCC said one inoperable camera was hanging by a wire and another shielded the view of the facility’s cannabis-storage area.

According to state data, the DCC has revoked at least 35 provisional and annual licenses in 2024.

Chris Casacchia can be reached at chris.casacchia@mjbizdaily.com.

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