BANGOR, Mich. — Michigan cannabis processor Ground Control Michigan, doing business as GCM Waypoint, has agreed to permanently surrender its state processor license after the Cannabis Regulatory Agency (CRA) alleged the company illegally transported marijuana products across state lines and committed numerous inventory and compliance violations.

The case centers on allegations that marijuana products produced and tracked under Michigan’s regulated cannabis system were discovered inside a licensed marijuana facility in Massachusetts, triggering a multi-state regulatory investigation. The allegations remain unproven, and the company resolved one enforcement action through a consent order without admitting wrongdoing.

According to a formal complaint filed by the CRA on June 4, Massachusetts cannabis regulators notified Michigan officials after discovering multiple Michigan-tagged marijuana products at a licensed marijuana producer’s facility. Investigators traced the products to GCM Waypoint’s adult-use processor license in Bangor. The products included gummies, vape cartridges, disposable vape products and infused pre-rolls sold under the Midwest Extracts, OnlyZips and King’s Choice brands.

CRA: Employee Initially Denied Transporting Products

The complaint alleges GCM Waypoint’s sales manager initially told investigators the marijuana products had been picked up in Michigan by an employee from the Massachusetts facility.

However, when CRA investigators later interviewed that Massachusetts employee, he allegedly said GCM Waypoint employees had delivered the products to Massachusetts while attending a cannabis trade show.

The complaint further alleges that during a second interview on March 30, the Michigan sales manager admitted he had lied to investigators and acknowledged personally transporting 249 marijuana products from Michigan to Massachusetts in his personal vehicle.

If proven, the allegations would represent a significant violation because marijuana remains illegal under federal law, and licensed cannabis products generally cannot be transported across state lines regardless of whether both states have legal cannabis programs.

Investigation Found Additional Alleged Violations

During a March 11 inspection of the Bangor facility, CRA investigators allege they found additional compliance issues.

Among them:

  • Products associated with the Massachusetts investigation were allegedly entered into Michigan’s Metrc tracking system as trade samples only after regulators in Massachusetts had already discovered them.
  • Hundreds of products listed in the state’s seed-to-sale tracking system allegedly could not be located during the inspection.
  • Investigators reported finding an untagged bag containing approximately 317 grams of marijuana biomass.
  • The company allegedly could not produce written standard operating procedures for a gummy reclamation process used to recover cannabis distillate from unsellable edible products.
  • Investigators also allege some inventory was improperly identified within the Metrc tracking system.

CRA Filed 12 Counts

The agency’s complaint alleges 12 violations of Michigan’s marijuana laws and administrative rules, including:

  • Illegal transfer of marijuana.
  • Transporting marijuana outside legal limits.
  • Failure to report suspected criminal activity.
  • Improper transfers between licensed businesses.
  • Failure to use a licensed secure transporter.
  • Inaccurate inventory tracking.
  • Missing standard operating procedures.
  • Possession of untagged marijuana.
  • Inventory tracking deficiencies.
  • Improper labeling of trade samples.

The CRA states the allegations could justify suspension, revocation, restriction or refusal to renew the company’s license, along with financial penalties.

License Permanently Surrendered

Rather than contest one of the CRA’s enforcement actions, Ground Control Michigan entered into a Consent Order and Stipulation with the agency.

Under the agreement, the company surrendered its adult-use processor license, agreed the license can never be renewed or reissued, and said it would permanently cease operations on July 28. The company did not admit the allegations but agreed the CRA could treat them as true solely for purposes of resolving the administrative complaint.

The consent order resolves Enforcement Action No. 26-00131. The CRA also filed a separate formal complaint, Enforcement Action No. 26-00320, alleging additional conduct. The status of that separate action was not immediately clear.

Company Did Not Respond

MITechNews emailed attorney Johnson R. Franso, who represents Ground Control Michigan in the CRA matter, several days before publication seeking comment on the allegations and the company’s decision to surrender its license. As of publication, no response had been received.

Why This Case Matters

Michigan’s cannabis industry operates under one of the nation’s most comprehensive seed-to-sale tracking systems, designed to document every regulated marijuana product from cultivation through retail sale. Allegations involving interstate movement of regulated products are relatively uncommon because state cannabis licenses do not authorize transporting marijuana across state lines, even between states where marijuana is legal.

The allegations contained in the CRA complaint have not been proven in an administrative hearing or court. Under Michigan administrative law, they remain allegations unless admitted or established through the regulatory process. Ground Control Michigan’s consent order specifically states the company resolved one enforcement action without admitting the truth of the allegations.

Editor’s Note: This story has been updated to clarify that the allegations are contained in a formal complaint filed by the Michigan Cannabis Regulatory Agency and have not been adjudicated. The company resolved one enforcement action through a consent order without admitting wrongdoing.