Missouri Regulators Approve License for Company Linked to Revoked License
In a move that has raised eyebrows, Missouri regulators have approved a license for a company co-owned by individuals involved in a revoked cannabis license. The company, AJO LLC, was granted a license to operate a cultivation and manufacturing facility in Waynesville, Missouri, despite the fact that one of its co-owners, Josh Corson, was involved in a company that had its license revoked due to regulatory violations.
Delta Extraction, the company whose license was revoked, was involved in a massive cannabis product recall in 2023 after it was found to be selling products containing unregulated THC oil. The recall affected over 60,000 products and was considered one of the largest in the state’s history.
Corson was a co-owner of Delta Extraction and was responsible for 17 cited rule violations, including manufacturing and selling bulk distillate in a false or misleading manner. He surrendered his agent ID license shortly after receiving a notice of pending revocation.
AJO LLC claims that it was only a passive investor in Delta Extraction and that it has been running the Waynesville facility since 2022. However, evidence presented in a lawsuit filed by a group of shareholders seeking to wrestle the facility away from AJO suggests that the company was fully involved in Delta’s operations and even initiated the arrangement that led to the revocation of its license.
The Missouri Division of Cannabis Regulation has acknowledged that it did not deny AJO’s application for a license due to Corson’s involvement in the revoked license. However, the division is currently reviewing its rules to add further detail to its authority to deny licenses to individuals who have had a license revoked.
The lawsuit filed by the shareholders is ongoing, and it remains to be seen whether AJO will be able to maintain its license and continue to operate the facility. The case has raised questions about the oversight of the cannabis industry in Missouri and the potential for companies with revoked licenses to continue operating in the state.
