New Jersey revokes marijuana licenses over unpaid fees

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New Jersey regulators revoked marijuana cultivation and manufacturing licenses from an operator in the state over unpaid fees.

According to NJBiz, the New Jersey Cannabis Regulatory Commission (CRC) voted 5-0 to revoke Harmony Foundation’s growing and manufacturing licenses because the company owes the state $700,000 in licensing fees.

The company, which operates the only adult-use dispensary in Hudson County, made a $100,000 payment toward its Class 5 retail license but has not paid for its Class 1 cultivation and Class 2 manufacturing permits, the business publication reported.

As part of the June 1 decision, Harmony can still sell recreational cannabis at its store in Secaucus but is required to purchase supply from other growers in the state.

Harmony CEO Shaya Brodchandel was surprised by the decision.

“If we had been notified that this action was being considered, we would have gladly explained that we are in complete compliance with the Feb. 15 agreement we reached with the CRC in terms of paying our license fees,” he told NJBIZ.

“The rash decision that was taken is an alarming wake up call to the New Jersey entrepreneurs that are seeking to work within the confines established by state regulators to further grow the cannabis industry.”

In April, the CRC renewed several marijuana licenses of Curaleaf Holdings after the agency reversed its decision that same month to deny license renewals for the New York-based multistate operator.

The denials of Curaleaf’s licenses came weeks after the MSO announced it was closing a cultivation facility in Bellmawr, New Jersey.

At the time, the CRC “cited the closure, along with the company’s clash with unionization and its lack of transparency with the state, as reasons for rejecting Curaleaf’s license renewal.”