One of the largest cannabis operators in the United States, Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) has been denied its license to operate in New Jersey.
This Thursday, the state’s Cannabis Regulatory Commission voted against giving the cannabis producer a license to operate in the Garden State because of its lack of transparency with regulators in the state and its previous clashes with employee unionization.
The company applied for two cultivation licenses, one manufacturer license and two cannabis retailer licenses in New Jersey.
Commission members rose some concerns around been some concerns raised about the CRC certifications that were provided by Curaleaf. Cannabis Regulatory Commission Chair Dianna Houenou abstained from voting citing concerns about lack of transparency regarding the layoffs a month ago and any other changes that the firm was going to make.
“I think it is important for the board to have proper insight and timely notice of major changes to facility operations,” said Houenou during the public meeting.
“I was encouraged by the work and the report from our office of diversity and inclusion as it pertained to Curaleaf but there is still a lot of information missing that couldn’t be provided and should be provided.”
Last month, the company announced it is shutting down its cultivation facility at Bellmawr and will lay off around 40 people. Last year, the company chopped 220 jobs from its Massachusetts operations and laid off 50 employees after closing a cultivation facility in California.
James Shorris, chief complaint officer at Curaleaf was representing the company during the public meeting on Thursday and said that while the layoffs are necessary, the company always allocates their workers to other facilities and provides an option for them.
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Members of the commission mentioned Curaleaf’s previous clashes with unionization movements and its lack of transparency in communicating with the regulators.
Workers at the Bellmawr grow were attempting to unionize with the UFCW, the union rep told local media, but “management interfered,” which led the union to file a formal complaint about Curaleaf with the National Labor Relations Board roughly three weeks ago.
The UFCW representative, Hugh Giordano, said he suspects the layoffs are in response to unionization attempts, an assertion that Curaleaf spokeswoman Stephanie Cunha strongly denied.
“Today’s unprecedented action by the New Jersey Cannabis Regulatory Commission’s Board – which overrode the commission’s own staff recommendation that our adult use licenses be renewed – is very disappointing”, said Boris Jordan, Chairman of Curaleaf, in a statement on Friday.
“We believe the CRC Board has wrongly interpreted the applicable regulations and that its decision to retaliate against Curaleaf for our need to consolidate production into one local facility is lacking in merit,” Jordan said.
“Curaleaf has never been cited for such a violation and we believe there is no regulation requiring permission for the staff reduction we announced. Curaleaf is in good standing with the CRC and has fulfilled the requirements necessary for the renewal of our licenses.”
Several other dispensaries, like Verano, Acreage, Terrascend, and Rise, were approved for annual licenses Thursday. New Jersey launched its recreational market a year ago and Curaleaf was among the first seven companies to receive approval to sell recreational cannabis.
The company’s license has until April 21 to operate but said it will remain open for business and will continue working with the CRC Board and its staff to ensure the renewal of its adult-use licenses, including by “any legal means necessary”.
Curaleaf stock dropped on Friday by 6.87 per cent to $3.12 on the Canadian Securities Exchange.
