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Nevada Cannabis Regulator Revokes Six CWNevada Licenses, Imposes Fine

Nevada's newly established Cannabis Compliance Board or CCB held its first board meeting earlier this week, where it approved a disciplinary settlement with one of the state's largest marijuana companies, CWNevada.

At the meeting, the CCB also approved a core set of regulations that will guide regulation of Nevada's cannabis industry. The CCB officially took over the state's cannabis enforcement on July 1, 2020.

CWNevada held 14 marijuana licenses and certificates in Nevada. The company operated the Canopi dispensaries in Las Vegas as well as several production and cultivation facilities.

The CCB said that the disciplinary settlement with CWNevada includes the revocation of six of its licenses, a fine of $1.25 million, and the remittance of all taxes owed amounting to $1.5 million.

It also includes the forced sale of the company's remaining eight licenses to pay back owed employee wages as well as other its financial obligations.

The registered owners of CWNevada will not be allowed to collect any proceeds from the sale and could face additional discipline, the CCB said.

A series of lawsuits have been filed against CWNevada, accusing the company of failing to pay state taxes, withholding payment to its employees, breaking contracts with business partners, and destroying evidence in ongoing civil cases.

A state investigation was launched into CWNevada's activities in 2018. A court-appointed receiver took over CWNevada in June to keep the company running so that its assets could be preserved and later redistributed to creditors.

At its first board meeting, the CCB also approved a core set of regulations for Nevada's cannabis industry.

The highlights of the regulations include an increase to all civil penalty categories; a more comprehensive licensing and approval structure for cannabis companies, owners and employees; and enhanced requirements for cannabis testing facilities, including more transparency of results.

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