Missouri AHC upholds revocation of Delta Extraction license
The Missouri Administrative Hearing Commission (AHC) has ruled in favor of the Missouri Department of Health and Senior Services (DHSS) and its marijuana regulating division, the Missouri Division of Cannabis Regulation (DCR), upholding the revocation of Delta Extraction, LLC’s comprehensive marijuana manufacturing license.
The decision also supports the administrative hold and recall of Delta manufactured products.
In the ruling, issued February 19, 2025 in AHC Case No. 23-0608, Commissioner Iles agreed with the position of state regulators that Delta Extraction did engage in practices that violated Missouri marijuana regulations. The AHC found that Delta used unregulated hemp sources to manufacture THC distillate.
Violations and license revocation
According to the AHC’s findings, Delta Extraction mixed THC-A from unregulated hemp sources with state-licensed marijuana products, violating 19 CSR 100-1.170(2)(E), which mandates that THC in Missouri marijuana products must be derived only from marijuana cultivated by licensed in-state cultivators. The company also failed to list all active and inactive ingredients in Metrc, as required under 19 CSR 100-1.130(1)(J)3.
In addition, the AHC ruled that Delta failed to maintain proper security protocols, including controlled facility access, video surveillance compliance, and alarm system functionality. Delta’s facility was subject to a break-in on August 7, 2023, which resulted in the theft of its video surveillance server. The AHC found that the company’s failure to properly secure its premises contributed to the loss of critical regulatory data.
Recall and suspension justified
Delta’s operations were initially suspended by DCR on August 2, 2023, following an investigation into alleged product inversion, defined by DCR as introducing unregulated marijuana into the state’s marijuana market. The AHC upheld DCR’s suspension, determining that Delta posed a “credible and imminent threat to public health and safety.”
Following the suspension, DCR placed an administrative hold on all products associated with Delta Extraction and issued a mandatory recall. The AHC concluded that these actions were warranted due to concerns over compliance and public safety.
A review of Metrc records and product testing results indicated that Delta’s distillate contained high levels of THC sourced from hemp THC-A rather than THC sourced from licensed Missouri-grown marijuana.
DCR revoked the company’s license shortly after a Cole County Circuit Court hearing denied a request by Delta to issue a temporary restraining order against DCR while the investigation continued. Announced on November 16, 2023, the revocation became effective December 2, 2023.
The ruling reinforces DCR’s sole authority to regulate the state’s legal marijuana market. The decision also underscores the importance of strict adherence to Missouri’s cannabis regulations, particularly as the industry continues to expand.
Delta Extraction presented evidence at the hearing that DCR was made aware of its manufacturing processes and had approved its standard operating procedures. The AHC stated that Delta’s practices were noncompliant with state regulations and that the company had not provided sufficient documentation to support its position.
With the AHC’s decision now finalized, Delta Extraction’s license revocation appears final. The company may still appeal the ruling in state court, but for now, its operations remain shuttered.
