Marijuana company Green Peak Innovations accuses state of putting patients in danger

WINDSOR TOWNSHIP -- Leaders of a medical marijuana company that plans to create at least 1,000 jobs in Michigan are furious over the state's rollout of its licensing program.

So furious they are starting a 30-day campaign on Wednesday that will encourage the state to shut down unlicensed marijuana establishments and follow through with rules they initially made, rather than wait for a judge to issue a ruling on their fate.

Michigan Court of Claims Judge Stephen Borrello recently issued a temporary restraining order that blocked enforcement of the state's March 31 deadline for unlicensed facilities to stay open. 

Jeff Radway, the CEO of Green Peak Innovations, said allowing unlicensed businesses to remain open is dangerous.

"It's resulted in unsafe, untested and, quite frankly, illegal products, said Jeff Radway, CEO of the Windsor Township-based Green Peak Innovations. 

State officials, including those with the state Department of Licensing and Regulatory affairs, have declined to comment on the matter because of pending litigation, said David Harns, a LARA spokesman. 

Radway said GPI, a state-licensed company, hasn't been able to sell the marijuana it's grown since January because licensed marijuana establishments have found it easier and cheaper to buy pot from caregivers who don't need commercial growing licenses. 

If state officials decide to crack down on unlicensed establishments and growing operations, Radway said his business — with locations in Windsor Township and Lansing — could sell about 2,000 pounds of marijuana to licensed establishments immediately.

"We're not about (price) gouging patients," Radway said. "We're actually about access." 

A news release from GPI said it collected in-store pricing market data in 2017 and 2018 from "hundreds of existing gray market dispensaries" that operated illegally in Michigan at that time. 

Prior to the new regulatory and mandated store closures, the news release said the average price of untested and unsafe medical marijuana was $42.40 per 3.5 grams (1/8th of an ounce). 

GPI's new price structure, with taxes, regulatory fees, transport and technology costs included, will be priced — on average — just 6 percent higher to consumers, the news release said. 

Borrello is expected to make a court ruling this week to determine whether unlicensed marijuana establishments can stay open and not be penalized when they apply for a license. 

As of Tuesday afternoon, court records indicated that Borrello had not scheduled a hearing regarding the matter. However, John Nevin, a Michigan Supreme Court spokesman, said Borrello indicated in court last week that a ruling could come Friday.

Steve Pitsillos, Green Peak Innovations' chief marketing officer, said the awareness campaign will include print and billboard advertisements. 

Company officials have scheduled a rally for noon Wednesday on the state Capitol's east lawn.

Eric Lacy is a reporter for the Lansing State Journal. Contact him at 517-377-1206 or elacy@lsj.com. Follow him on Twitter @EricLacy.

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