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Minnesota-based Vireo Health International, Inc. (CSE:VREO) (OTCQX:VREOF) is suing the state, arguing that a law hemp law is discriminatory toward producers of medical cannabis edibles, reported FOX 9 Minneapolis-St. Paul.
The Minneapolis-headquartered company is one of the two licensed medical cannabis businesses authorized to sell cannabis to registered patients in the state. The other one is Chicago-based Green Thumb Industries Inc. (OTCQX:GTBIF) (CSE:GTII). Both businesses are affected by the law, which took effect on July 1 and currently bans them from selling hemp-derived edibles containing THC to adults 21 and older at dispensaries where the companies' "operations and sales are heavily regulated and must comply with stringent testing, reporting, security, and eligibility requirements."
The law, green-lighted by state officials last spring, allows unlicensed companies to market hemp-derived edibles containing THC in grocery and convenience stores.
"There is no rational basis to create separate legal requirements for sellers of medical cannabis-derived edibles, like Vireo, and sellers of hemp-derived edibles," the lawsuit alleges. "Medical cannabis and hemp are the same plant species. THC from medical cannabis is the same as THC from hemp. But, without any rational basis, Minnesota law treats medical cannabis-derived edibles very differently from identical hemp-derived edibles."
Attorney General Keith Ellison and commissioner of the health department Jan Malcolm are two of the numerous state agencies and officials named in the complaint.
The lawsuit also touched on the issue that the new THC law doesn't demand a license to produce, distribute or sell THC edibles and drinks. The Board of Pharmacy, which was tasked with regulating cannabis edibles products does not have a lab to test the potency or safety of the product, nor a contract with a laboratory.
"There are simply not enough regulatory or law enforcement resources available to ensure that hemp-based edibles being sold in Minnesota are legal and safe," the lawsuit notes.
Gov. Tim Walz (D) signed the large-scale legislation that included provisions that provide permanent protections to Minnesota-based hemp businesses for legal sales of CBD-infused foods and drinks in May.
Besides CBD, the measure allows all hemp-derived cannabinoids to be legally sold in food items, beverages, and topicals, to name a few. The products must contain less than the federal limit of 0.3 % THC.
Photo: Benzinga Edit; Source: Shutterstock
