Sequoia Labs, a Sacramento-based independent testing facility, “voluntarily surrendered” its license after learning that its lab director had been falsifying reports and excluding more than a dozen pesticides from its testing protocol and results.

The realization came after state inspectors noticed irregularities among the company’s lab reports. An investigation by the Bureau of Cannabis Control found the culprit in the company’s lab director, Marc Foster, who has been terminated from Sequoia Labs. A new lab director has been hired.

In an Instagram post Nov. 28, the company wrote: “During a BCC inspection on Tuesday, November 27, it was discovered that pesticide testing here at Sequoia Analytical Labs was not in compliance with BCC regulations. 22 of the required 66 pesticides, primarily, Category 2 pesticides, were not being correctly tested due to a faulty instrument. It was further discovered that the Lab Director knew about this and was secretly falsifying the results in order to issue COAs from July 1 to November 27.” (Note: COAs are certificates of analysis.) The products associated with the hundreds of COAs issued in that five-month period are expected to be recalled, though the BCC has not yet formally issued a public statement on the matter. 

"As ownership and management, we were blindsided by this," Steven Dutra, general manager of Sequoia Analytical Labs, told FOX40. 

Sequoia Labs is one of five licensed testing facilities in the Sacramento area, and one of 43 statewide, according to the BCC.

In California, product samples are not transferable between labs. This means that any samples currently housed at Sequoia’s laboratory may not leave the facility to be sent elsewhere for testing. Distributors that had been working with Sequoia may identify new labs to send new batches of product. (Other states, like Florida, allow lab-to-lab transfer.) 

The BCC declined to comment for this story.

Debby Goldsberry, executive director of Magnolia Wellness in Oakland and an editorial advisory board member for Cannabis Dispensary, said her company formerly used Sequoia Labs, prior to 2018. “For anybody who’s a business owner, that [Instagram] statement is irksome, because it’s the company’s leadership that’s responsible for anything that happens in the company,” she said. “I think it makes all of us nervous, because Sequoia was a trusted lab. … Is this the tip of an iceberg, or is it an anomaly? That’s the question on everyone’s mind right now.”

Sequoia Labs wrote in its Instagram post that the company is “already hard at work making the needed changes to the instrument and revamping procedures” in order to get its license reinstated.

Any and all questions and product concerns may be sent to bcc.labs@dca.ca.gov.

A group of Democratic lawmakers in Michigan have introduced a bill that seeks to release prisoners convicted of certain types of marijuana crimes. 

House Bill 6508 would create a release process for convicts if they are in prison for the use, possession or distribution of marijuana if they meet certain conditions.

The bill also seeks to reduce the sentence for other marijuana crimes. 

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Marlboro cigarette maker Altria is in early stage talks to acquire Canadian cannabis producer Cronos, as it seeks to diversify its business beyond traditional smokers, people familiar with the matter told CNBC.

Cronos has not agreed to any deal and there is no certainty it will do so, the people said.

The news comes as Altria is also eyeing a significant minority stake in e-cigarette company Juul, people familiar with the situation have told CNBC.

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DENVER--(BUSINESS WIRE)--PRESS RELEASE--MJardin Group, Inc. has announced the closing on Nov. 26, 2018 of a $6 million minority investment in OG DNA Genetics Inc., a cannabis company with operations in California, Canada and Europe. MJardin’s investment was part of a $35 million financing completed by DNA Genetics last week.

For over 15 years, genetics bred by DNA Genetics have won nearly two hundred awards around the world. DNA Genetics intends on using the proceeds from its financing to manufacture, distribute, brand and sell a wide variety of high-quality adult cannabis products under the DNA label, including indoor-grown dry flower, pre-rolled joints, vaporizer cartridges and a full line of concentrates.

MJardin’s investment provides the company with access to DNA Genetics’ vast library of award-winning cannabis strains and genetics for use throughout MJardin’s multi-country network of facilities. The investment also provides MJardin with exposure to the brick and mortar cannabis retail market in California.

“DNA Genetics is a highly regarded cannabis brand globally with a presence in three of the largest cannabis markets in the world,” said Rishi Gautam, chairman and chief executive officer of MJardin Group. “We are excited to partner with DNA Genetics, which is a true innovator in genetics and breeding, as we grow our U.S. and international footprint.”

“MJardin is a highly experienced cannabis management company and a leading operator of cannabis assets throughout the supply chain,” said Charles Phillips, chief executive officer of DNA Genetics. “We are very pleased to partner with MJardin to further build out our California operations and to extend our reach into other U.S. and international markets through their large and diverse network of cannabis facilities.”