New York Pauses Sales of Popular Cannabis Vapes Amid Investigation

New York State has paused sales of millions of dollars of top-selling cannabis vapes and pre-rolled joints amid an investigation into whether they were made with legally approved ingredients produced in the state, according to documents obtained by The New York Times.

In a series of orders issued on April 23, the Office of Cannabis Management, which oversees businesses that grow and sell cannabis in the state, directed dispensaries to remove from their shelves mostly vapes and pre-rolled joints from the companies Stiiizy and mfused, among other products.

The orders offered a window into the cannabis agency’s investigation of companies accused of pumping weed from unlicensed growers into licensed dispensaries, which is illegal. The Times obtained two of the documents through a public records request and another order from two people with whom they were shared.

The strategy of using unlicensed growers, known as “inversion,” undercuts promises that legalization offers consumers a safe supply of cannabis products that can be traced back to local farms. It is a federal crime to transport marijuana across state lines, so legal weed has to be grown and sold in the same state through licensed businesses.

According to the orders, investigators were questioning the origin of cannabis oil that was used to fill the vapes and the accuracy of lab tests that certified all of the mfused varieties as safe. Stiiizy, based in Los Angeles, and mfused, based in Seattle, are two of the biggest cannabis brands in America.

Their vapes were among the 10 best sellers in New York in April, according to Headset, a data firm that crunches cannabis sales numbers. The quarantined products, which are being held in factory warehouses and dispensary vaults, have a retail value exceeding $10 million, according to batch records and retail pricing.