The Maryland Cannabis Administration (MCA) has fined Cannabus, LLC for failing to report ownership changes in its annual reports. The company also violated state regulations by transferring a majority ownership interest in its license before it was legally allowed to do so.
According to the Consent Order, Cannabus, LLC received a medical cannabis dispensary license in 2017. In 2020, the company redeemed ownership interests held by three members, effectively giving sole ownership to William Askinazi. However, Cannabus, LLC did not report these transfers to the Maryland Medical Cannabis Commission (MMCC) or the predecessor to the MCA. Furthermore, in its 2021 annual report, the company listed an undisclosed entity called GN Capital 4, LLC (GNC) as a member with 0% equity.
The MCA found that Cannabus, LLC violated state law by transferring ownership interest in its license before it was legally permitted to do so (after three years of operation). The company also violated regulations by failing to submit requests for approval of these transfers before executing them. Additionally, Cannabus, LLC’s inaccurate annual reports violated regulations requiring licensees to accurately report ownership information.
To resolve these violations, Cannabus, LLC will pay a $4,500 fine to the Administration’s Compassionate Use Fund. The company must also submit a request for retroactive approval of the unauthorized ownership transfers within 60 days.
