Michigan Permanently Shuts Down Sky Labs for Repeated Marijuana Violations

The state’s Cannabis Regulatory Agency (CRA) announced Monday that it finalized its decision not to renew Sky Labs’ processor license. Although the company initially contested the nonrenewal, it later withdrew its hearing request, making the decision final. Sky Labs had one of the worst compliance records in the state’s marijuana industry. The CRA says the company produced edibles containing banned substances like melatonin, repeatedly failed product safety testing, sold untagged marijuana, and violated tracking and labeling requirements. Other infractions included poor surveillance and a failure to report an adverse reaction involving a child.

Despite agreeing to pay over $130,000 in fines and undergoing corrective actions—including monthly audits, surrendering its medical license, and updating procedures—violations continued. The most recent complaint, filed in late 2023, cited inaccurate inventory tracking.

Under Michigan law, marijuana businesses must maintain good standing to renew their licenses. The CRA determined Sky Labs no longer met that standard and ruled the company was “not eligible, qualified, or suitable” to continue operating.

The revocation took effect immediately. Sky Labs is now prohibited from conducting any marijuana-related business in the state.