Missouri revokes license of marijuana company at center of major recall

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Image of Missouri's state capitol building with the Missouri River in the foreground.

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Missouri regulators revoked the manufacturing license of Delta Extraction, which made infused THC goods that led to the recent recall of more than 60,000 products and millions of dollars in lost sales and inventory for retailers and brands.

The Missouri Division of Cannabis Regulation (DCR) also accused Delta Extraction of additional violations – on top of the initial accusation that the company violated the rules by using out-of-state, hemp-derived THCA to manufacture infused products destined for Missouri store shelves, according to the St. Louis Post-Dispatch. THCA, when heated, turns into THC.

The Missouri Department of Health and Senior Services (DHSS) said in a news release Thursday the license revocation would take effect Dec. 2.

“While Delta Extraction’s use of out-of-state cannabis in our regulated system has been well-publicized and is a critical issue, DCR also found numerous other violations of rules at this facility,” the agency’s director, Amy Moore, said in the news release.

The DCR’s new allegations against Delta Extraction include:

  • Failure to comply with seed-to-sale tracking requirements and falsifying traceability data.
  • Failure to ensure all marijuana products from its facility were compliantly tested.
  • Failure to properly secure marijuana products and maintain required security equipment.

The market upheaval dates to August, when the DHSS recalled 62,000 edibles, vape pens and other products that contained distillate manufactured and sold by Delta Extraction and its affiliates.

Missouri regulators suspended the company’s business license on Aug. 2.

An attorney for Delta Extraction said in a statement the state’s actions were “illegal and unfounded,” according to several Missouri media outlets.

“The issue stems from Delta using legal hemp products in its legal marijuana products,” attorney Chuck Hatfield added, citing internal state documents in which a Missouri compliance officer notified supervisors she believed the company’s process was legal.

Rich Chrismer, a spokesperson for Delta Extraction, did not immediately respond to an MJBizDaily inquiry for comment.

MJBizDaily recently reported that Missouri regulators cleared for sale 15,000 products that had been recalled.

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