Michigan Edibles Maker Fined $100k, Loses Medical Cannabis License

The problem is the latest in a string of issues at Sky Labs.

Longtime Michigan edibles maker Sky Labs has been fined $100,000 and had its medical processing permit revoked by the state Cannabis Regulatory Agency after 20 milligrams of its mislabeled gummies were consumed by a four-year-old child.

According to a press release from the agency, Sky Labs will be allowed to remain in business, but only with its adult-use processor license. The operator also will have “stringent compliance requirements” now placed upon it.

“When businesses don’t follow the laws and rules that govern the cannabis industry, it is important that they be held accountable for their actions,” agency chief Brian Hanna said in the release.

The new requirements for Sky Labs include:

  • A full onsite audit conducted by state inspectors.
  • Providing regulators with all of their standard operating procedures.
  • Giving copies of all operations logs monthly for the next year.

If the company falls short at any point, its recreational business permit may be suspended.

The incident with the child – which happened in June 2022 – is only the latest in a string of issues at Sky Labs, the CRA said in its release, but it appears to have been a nearly final straw.

The four-year-old that consumed the company’s edibles is the child of a Sky Labs employee, who was among 10 workers given free trade samples of Chewii Sour Cherry Edibles that were mislabeled as containing only CBD. The gummies contained 10 milligrams of THC apiece, and the child ate two, the CRA said in its release.

“The child became seriously ill and was hospitalized due to adverse reactions to the marijuana edibles. A police report was filed with the Davison City Police Department and an investigation was opened with Child Protective Services,” the CRA release stated.

Prior to that, Sky Labs had been fined $20,000 in April 2021 for a problem with its vape cartridge manufacturing business, MLive.com reported.

In addition to that, the CRA recounted that Sky Labs had:

  • Vape cartridges fail safety testing in the spring of 2021.
  • Multiple violations in September 2021, including having unqualified workers on the job, a non-working video surveillance system in one manufacturing area, and track-and-trace tags that weren’t properly affixed to pre-rolled joints.
  • Product testing inconsistencies in December 2021 and January 2022 that raised red flags.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.

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