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Curaleaf Fined $250,000 By Massachusetts Marijuana Regulator

Massachusetts marijuana regulators have fined Massachusetts-based cannabis company Curaleaf $250,000 for failing to seek prior approval for a change in ownership of the company that took place last year. This is the largest fine imposed by the regulators to date.

The Massachusetts Cannabis Control Commission imposed the fine on Wakefield-based Curaleaf Massachusetts for failing to obtain approval for a merger with its parent company Curaleaf Inc. in October 2018. The final order and stipulated agreement was ratified with a unanimous 5-0 vote by the commissioners.

The $250,000 fine must be paid by Curaleaf within 30 days to the regulator. However, the fine enables the company to avoid a suspension or revocation of its licenses.
The Commission noted that Curaleaf's violation of rules was the result of good faith, but mistaken interpretation of the regulations.

Curaleaf converted from a non-profit entity to a for-profit entity in March 2018. Later in the year, its parent company merged with a Canadian company and commenced trading on the Canadian Securities Exchange.

The commission began an investigation after Curaleaf submitted an application for change of ownership and control in February 2019, months after the deal closed.

The commission noted that Curaleaf should have asked for permission before completing the merger and also updated its April 2018 license applications as it took steps toward completing a change of ownership.

In a statement, Curaleaf Holdings said it was granted approval for its change of ownership and control by the Massachusetts Cannabis Control Commission.

"Curaleaf thanks the Commission and the Commission staff for working collaboratively towards this result. Curaleaf has been proudly serving the Massachusetts medical community and looks forward to working with the Commission to secure approval of its adult-use licenses," Curaleaf said.

Curaleaf currently operates in 12 states in the U.S., with 48 dispensaries, 13 cultivation sites and 12 processing sites.

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