Oregon Cannabis Retailer Kaya Shack Enters Sale-Surrender Settlement

Oregon Cannabis Retailer Kaya Shack Enters Sale-Surrender Settlement

<![CDATA[Kaya Shack, a vertically integrated cannabis operator in Oregon, will sell its Salem dispensary by Feb. 1, 2023, as part of a sale-surrender settlement for two violations stemming from 2019, according to the Oregon Liquor and Cannabis Commission (OLCC).Kaya Shack is owned and operated by Kaya Holdings Inc., the first fully reporting public company to own and operate a seed-to-sale legal cannabis business. RELATED: Going PublicFor roughly a year—from February 2019 to February 2020—Kaya Shack allegedly sold adulterated prerolls and cannabis flower to consumers or transferred to other licensees. The products were exposed to broken glass from dropped jars, which the retailer “more likely than not had attempted to sift out,” according to an OLCC investigation.  Kaya Shack issued a response statement to those allegations: “The company had previously confirmed with the OLCC the appropriate procedures for destroying and disposing of glass contaminated product and subsequently documented the company’s compliance with these procedures (including video and pictures of said disposal).”In a second violation, OLCC officials allege that on multiple occasions from approximately February 2019 to May 2020, Kaya Shack Chairman and CEO Craig Frank and Senior VP of Operations Chad Craig (“and/or licensee’s employees, agents, or representatives”) asked or encouraged employees to conceal potential evidence of state violations “by telling them not to speak directly to the OLCC and/or by threatening employees with termination or lawsuits if they were to report issues of concern” to state regulators. In addition, Kaya management had employees sign a non-disclosure agreement stating they could be subject to a fine if they made any negative comments about the business, according to the OLCC. According to the statement from Kaya, company officials forwarded their employment agreement to the OLCC. “[The agreement] requires employees to confirm their understanding of how to address any compliance concerns that any…

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Source : Oregon Cannabis Retailer Kaya Shack Enters Sale-Surrender Settlement

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