Michigan Revokes 20 Marijuana Grow Licenses, Issues $2 Million Fine After ‘Flower’ Shipments Found to Contain Dirt and Mulch
- Michigan regulators revoked 20 medical marijuana grower licenses and fined GP Holdings LLC $2 million after an investigation revealed shipments labeled as marijuana flower containing dirt and mulch.
- The Michigan Cannabis Regulatory Agency found GP Holdings transferred packages with no THC and misrepresented product types, including shake, kief, and plant waste, while also citing multiple regulatory violations.
- Violations included inaccurate product descriptions, untagged marijuana, unauthorized storage units and equipment, failure to maintain security and surveillance, and improper recordkeeping and approvals.
- The company admitted to 35 violations during a contested hearing, resulting in license revocations and fines, with future license applications potentially reviewed due to these infractions.
Michigan marijuana regulators have revoked 20 medical marijuana grower licenses and imposed a $2 million fine against a Clare-based company after an investigation found extensive violations, including shipments labeled as marijuana flower that contained material resembling dirt and mulch.
The Michigan Cannabis Regulatory Agency (CRA) announced the action Tuesday against GP Holdings LLC, doing business as Millie Montana Industries. The 20 Class C grower licenses were associated with a facility at 9684 Russell Road in Clare.
According to the agency, GP Holdings transferred packages to a licensed processor under manifests identifying the contents as marijuana flower. Samples taken from three packages contained no THC and “resembled and had the consistency of dirt and mulch,” regulators found.
Other packages appeared to contain shake, kief or post-harvest plant waste despite also being identified as marijuana flower on transfer manifests.
“Shipping dirt and mulch under manifests identifying it as marijuana flower is egregious conduct that strikes at the integrity of Michigan’s regulated marijuana market,” CRA Executive Director Brian Hanna said. “The statewide monitoring system depends on licensees accurately reporting what they grow, possess, and transfer.”
Regulators also cited incorrect product descriptions and weights, untagged marijuana flower and biomass stored in bags, bins, barrels and outdoor storage units, and transfers of untested marijuana to a processor without agency approval.
Additional violations included bringing seeds into the facility without transfer manifests, inaccurate or delayed entries in the state tracking system, storage units without required security measures and failure to maintain surveillance recordings.
The agency also said GP Holdings added storage units, an industrial hemp dryer and an industrial grinder without regulatory approval and failed to provide required standard operating procedures, employee records and a waste-disposal plan.
During an October 2025 contested case hearing, the company stipulated that the factual allegations in the CRA’s first superseding formal complaint were true and constituted violations of state law or administrative rules.
An administrative law judge in January recommended finding the company responsible for all 35 alleged violations.
The final order revokes licenses GR-C-000901 and GR-C-000906 through GR-C-000924 and requires GP Holdings to pay the $2 million fine. All 20 licenses had already been closed before the final order was issued.
The CRA said any future license applications involving the company’s supplemental applicants may be reviewed in light of the violations documented in the case.