Two Mississippi medical cannabis companies will be the recipients of more than $6.3 million from legal proceedings following a massive product recall.
According to the Mississippi Independent Cannabis Association (MICA), Hattiesburg-based medical cannabis dispensary FerrCann, Inc., and Brookhaven cultivator SADUJA, LLC will be obtaining the funds due to financial losses incurred after an administrative hold was placed on product tested at Rapid Analytics.
The Natchez-based lab is one of just two facilities in the Magnolia State approved to test cannabis products. Back in December, the state health department opened an investigation into products approved by Rapid Analytics after the Mississippi Medical Cannabis Program was tipped that the facility violated faulty practices related to the use of pesticides and the presence of mycotoxins while the products were being tested.
Dispensaries were then instructed not to sell any products tested by Rapid Analytics until retesting could be carried out by state regulators. With roughly 70 percent of Mississippi’s medical cannabis tested by Rapid Analytics, dispensaries and cultivators alike were put in peril as retesting took more than a month to be executed.
Now, the judicial system has found that at least two entities are worthy of financial compensation for setbacks they faced as a result of the investigation into Rapid Analytics.
“We are thrilled to have received the judgment for two of our members who have endured the adverse impacts of the Rapid Analytics Recall,” Pete Stokes, MICA co-founder and board member, said. “This victory not only underscores the importance of our trade association but also reaffirms MICA’s unwavering commitment to advocating for the interests of our members.”
MICA is encouraging all locally-owned cannabis businesses affected by the Rapid Analytics incident to use the resources and support offered by the association to seek a remedy for losses incurred. In addition, the Mississippi State Department of Health has begun the process of revoking Rapid Analytics’ license.
