New Mexico Regulators Seek Injunction Against Cannabis Business Accused of Diverting Product

August 3, 2023 · Ganjapreneur

The New Mexico Regulation and Licensing Department on Tuesday filed a petition seeking a preliminary injunction against Sawmill Sweet Leaf, LLC, alleging the company has been diverting cannabis out of state and manufacturing cannabis concentrate without a permit.  

In a statement, Linda Trujillo, superintendent of the Regulation and Licensing Department, said “A key component of compliance actions is the ability to suspend licenses immediately if they pose an instant threat to the health, safety and lives of consumers.” 

Regulators are accusing Sawmill Sweet Leaf of operating an unlicensed closed-loop extraction system at its facility in Albuquerque. The business does hold a Cannabis Manufacturer II license which allows it to manufacture edibles or topical cannabis products but does not allow for any type of extraction.   

Evidence obtained by the Cannabis Control Division alleges that the products being sold by Sawmill Sweet Leaf out of state have not been tested. 

As a result of House Bill 384, which became effective on June 19, 2023, a new provision was added to the state’s Uniform Licensing Act allowing licensing agencies to seek a preliminary injunction if a licensee engages in unlawful activity that poses an immediate threat to public health and safety. 

The petition was filed in the Second Judicial District Court in Bernalillo County. A hearing has not yet been set.   (Full Story)

In categories:Business Legal
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