Michigan Regulator Suspends Loud Labs Hemp License Over High-THC Products

The CRA moved to revoke Loud Labs of Michigan's processor-handler license after inspectors say lab tests showed delta-9 THC levels above the legal hemp limit.

FILE — enforcement · Auckland Museum / CC BY 4.0

Michigan's Cannabis Regulatory Agency has suspended the hemp processor-handler license of Loud Labs of Michigan LLC and filed notice that it intends to revoke the license entirely, according to a CRA press release dated Aug. 25.

The agency said the action followed an investigation into the Lansing company's possession of cannabis products containing delta-9 tetrahydrocannabinol above the legal threshold for hemp.

What Investigators Found

CRA staff conducted a compliance inspection at Loud Labs' facility at 736 N. Larch St. in Lansing on March 25, 2026, and observed multiple cannabis products along with certificates of analysis indicating delta-9 THC concentrations above 0.3 percent, the agency said.

A follow-up inventory audit on May 18, 2026, again identified multiple products whose lab certificates reported delta-9 THC levels exceeding that threshold, according to the CRA.

The Alleged Violation

The CRA alleges Loud Labs, which held license number HPHL-000047, violated Section 12(1)(a) of Michigan's Industrial Hemp Research and Development Act, which allows suspension of a processor-handler license when a licensee intentionally possesses cannabis exceeding 0.3 percent delta-9 THC on a dry-weight basis.

The agency's notice also imposed fines on the company, though the release did not specify a dollar figure, referring readers to the full notice document for details. The CRA emphasized that the allegations remain unproven "unless and until established through the administrative process," meaning Loud Labs is entitled to a hearing before any final revocation takes effect.

Broader Enforcement Pattern

The Loud Labs suspension follows a string of other CRA disciplinary and public-safety actions in recent weeks, according to the agency's own release list. Those include an Aug. 20 voluntary recall advisory for Nuggz Nectar infused drinks, a formal complaint against Monroe-based Fire Farm LLC dba Crave Cannabis, a complaint against New Buffalo-based Weber Family Ventures dba The Plug, and a consent order under which Unique Farms LLC dba Zaza Recreational agreed to surrender its retailer license and close permanently.

State licensing records reviewed by Cannabis Newz did not turn up an entry specifically matching Loud Labs of Michigan under the state's official license database used for this report, leaving the company's broader licensing history unclear from available records.

Market Context

Michigan's state license statistics, current as of Aug. 26, list 923 open retail licenses, 2,545 cultivation licenses, 335 manufacturing licenses and 38 testing labs statewide — though hemp processor-handler licenses like the one held by Loud Labs are regulated under a separate statute from the adult-use marijuana licenses that make up most of that count.

Monthly sales filings show Michigan's adult-use cannabis market generated roughly $253 million in June 2026 and roughly $271 million in July 2026, an increase between the two months. That contrasts with a separate report from MMJDaily, cited in Cannabis Newz's related coverage, which found Michigan sales fell 5% as Ohio's market surged 22% — a discrepancy that may reflect differing time periods, methodologies or data cuts and could not be reconciled with the available material.

What to Watch

The CRA's notice sets up an administrative process in which Loud Labs can contest the allegations before any final revocation. Because the agency's release does not detail fine amounts or a hearing timeline, it remains unclear how quickly the case will be resolved or whether the company will continue operating in any capacity while the process unfolds.