Mary & Main, a Capitol Heights dispensary owned by CHA Enterprises, Inc., has agreed to pay a $13,000 fine to the Maryland Cannabis Administration (MCA) for failing to properly report ownership changes and for late and inaccurate disclosures.
Key Findings:
- In 2018, CHA Enterprises shareholders exchanged their shares for membership in a holding company, CHA Holdings LLC, effectively transferring ownership of the dispensary license without approval from the MCA.
- Maryland law prohibits ownership transfers of cannabis licenses within the first 3 years of operation. (The MCA acknowledges this transfer might have been allowed with prior approval due to no change in controlling interests.)
- From 2020 to 2023, Mary & Main failed to disclose in its annual filings that CHA Holdings LLC was the sole owner.
- The dispensary also failed to promptly respond to the MCA’s requests for information regarding the ownership changes.
Repercussions:
- Mary & Main will pay a $3,000 fine for inaccurate reporting and a $10,000 fine for the unauthorized transfers.
- The dispensary must submit retroactive applications for approval of the ownership transfers and pay any associated fees.
- They are also responsible for all costs associated with complying with the Consent Order.
Significance:
Accurate ownership reporting is crucial for the MCA to ensure compliance with licensing regulations, including limitations on the number of licenses a single entity can hold. This case highlights the importance of transparency and adherence to regulations for cannabis businesses in Maryland.
