CBD Oil

Oregon Cannabis Processor Quits Industry Over CBD Oil Violations

An Oregon cannabis company has given up its state license to process cannabis products after being hit with a number of violations for allegedly delivering CBD oil to unlicensed retailers.

Portland-based Modern Medicinals routed CBD oil to at least two health and wellness centers in Oregon, state regulators say. The company also allegedly falsified track-and-trace data in order to allow the products to be diverted.

Oregon cannabis producers are exploring growing hemp for CBD in light of rapidly falling cannabis prices.

According to the Oregon Liquor and Cannabis Board, Modern Medicinals delivered the CBD oil to Mandala Medicine & Wellness, which offers acupuncture and massage therapy in Portland, and Salem Hypnosis Solutions, which uses hypnosis in therapies to promote things such as weight loss, smoking cessation, stress reduction, and memory improvement.

Regulators announced Monday that Modern Medicinals has accepted a letter of reprimand for the charged violations, withdrew its request for a hearing, and allowed its processor license to expire. Regulators ratified the stipulated settlement on April 19.

In addition to three violations for the alleged diversion, Modern Medicinals was hit with a fourth violation for claiming its CBD oil, which was produced as an adult-use cannabis product, had “comprehensive pain relief properties” and other “medicinal effects.”

RELATED STORY

Oregon Cannabis Growers Turning to Hemp as CBD Extract Booms

More and more state-licensed cannabis producers are exploring growing hemp for CBD oil production in light of rapidly falling cannabis prices in Oregon. Since 2015, the price for a gram of cannabis has fallen about 50%, according to a report by the Oregon Office of Economic Analysis. Meanwhile, farmers can reportedly make more than $100,000 an acre growing hemp.

As grower Jerrad McCord told the Associated Press, “Word on the street is everybody thinks hemp’s the new gold rush.”

3 thoughts on “Oregon Cannabis Processor Quits Industry Over CBD Oil Violations

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  2. If only they would be this strict with alcohol or Nicotine…When we were in Portland …I would follow my friends into the dispenceries and they were strict about everything…Id’s ..how much was bought..everything. Excellent blog…

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