Maryland medical marijuana company has license reinstated

Did you miss the webinar “Women Leaders in Cannabis: Shattering the Grass Ceiling?” Head to MJBiz YouTube to watch it now!

MaryMed has been given another chance at Maryland’s medical marijuana market after a judge ruled that the MMJ company likely didn’t violate the law.

The Baltimore Business Journal reported the Dorchester-based company received preapproval from state regulators in 2016 to open cultivation, retail and processing operations.

But the licenses were rejected after the state began an investigation into the business’ parent company over potential violations of state marijuana rules.

Ultimately, after a hearing on the issue, Maryland Administrative Law Judge John J. Leidig ruled the company didn’t break marijuana laws.

Here’s what the investigation found:

  • When MaryMed originally applied for a license in late 2015, the company was 90% owned by Vireo Health.
  • After MaryMed was awarded its preapproval, state regulators learned that two subsidiaries of Vireo Health were under investigation for allegedly diverting marijuana across state lines from Minnesota to New York.
  • Following that, Vireo Health transferred its equity in MaryMed to a newly formed LLC called Dorchester Capital, the Baltimore Business Journal reported.
  • Regulators then decided to reject MaryMed’s full approval for licenses based on the investigation into state-to-state diversion of cannabis, which MaryMed appealed.
  • That’s when Judge Leidig ruled there was “no reasonable likelihood” MaryMed participated in smuggling cannabis across state lines, The Baltimore Sun reported.

According to a MaryMed spokesman, the company is an “affiliate” of Vireo Health.

State regulators gave MaryMed its licenses back under the following conditions:

  • The company institute best practices to prevent diversion and control inventory.
  • Submit to added supervision.
  • Keep surveillance recordings that date back 365 days.