The Michigan Cannabis Regulatory Agency on Wednesday, July 5, punished a Mount Morris marijuana business over 30-plus rules violations that included giving employees mislabeled THC gummies, resulting in the hospitalization of a 4-year-old.

Sky Labs, 9421 North Dort Highway, agreed to “surrender” its medical marijuana processing license, although the business retains a recreational marijuana license, the CRA said. The CRA also issued a $100,000 fine and imposed stringent oversight requirements for the ongoing business.

Sky Labs, a processor that makes marijuana edibles, admitted to violating some rules, including keeping dozens of pounds of illicit, untracked marijuana at its business that may not have underwent required safety testing. Additionally, the business in June 2022 gave 10 employees Chewii Sour Cherry gummies that were mislabeled as CBD, a non-psychoactive

“An employee provided the edibles to her 4-year-old child, the child consumed two edibles which contained 20 mgs of marijuana,” and “the child became seriously ill and was hospitalized due to adverse reactions to the marijuana edibles,” the CRA said. “A police report was filed with the Davison City Police Department, and an investigation was opened with Child Protective Services.”