Lansing, Michigan – Michigan cannabis regulators have revoked 20 medical marijuana grower licenses tied to a Clare facility after an investigation uncovered problems ranging from inaccurate tracking records to packages labeled as marijuana flower that investigators said contained material resembling dirt and mulch.
The enforcement action against GP Holdings LLC, doing business as Millie Montana Industries, also carries a $2 million fine, a significant penalty in a case involving 35 alleged violations at the company’s operation at 9684 Russell Road.
According to the Cannabis Regulatory Agency, the company transferred packages to a licensed processor using manifests that described the contents as marijuana flower. Samples taken from three packages contained no THC and were found to resemble dirt and mulch in appearance and consistency. Other transferred packages appeared to contain shake, kief or post-harvest plant waste even though they were also listed as marijuana flower.
“Shipping dirt and mulch under manifests identifying it as marijuana flower is egregious conduct that strikes at the integrity of Michigan’s regulated marijuana market,” CRA Executive Director Brian Hanna said.
“The statewide monitoring system depends on licensees accurately reporting what they grow, possess, and transfer.”
The investigation extended well beyond the disputed package descriptions. Regulators identified incorrect product weights on manifests, untagged marijuana and biomass, and the transfer of untested marijuana packages without CRA approval.
Investigators also found marijuana flower, mulch, ground plants and biomass stored in bags, bins, barrels and outdoor storage units. The agency said nonviable plants were replaced with seeds brought into the facility without transfer manifests, while entries in the statewide monitoring system were inaccurate or delayed.
Security and recordkeeping issues were also documented. Some storage units lacked alarm systems, sufficient surveillance coverage or commercial-grade locks. The company also failed to maintain required surveillance recordings and did not provide certain standard operating procedures, employee records or a waste-disposal plan.
The CRA further found that storage units, an industrial hemp dryer and an industrial grinder had been added without agency approval.
During an October 2025 contested case hearing, GP Holdings stipulated that the factual allegations in the CRA’s first superseding formal complaint were true and constituted violations of Michigan law or administrative rules. In January 2026, an administrative law judge recommended finding the company responsible for all 35 alleged violations.
The company’s 20 Class C grower licenses had already been closed before the final order was issued. The order formally revokes licenses GR-C-000901 and GR-C-000906 through GR-C-000924 and requires GP Holdings to pay the $2 million fine.
The CRA’s final order and related case documents are available online. The agency said future license applications involving the company’s supplemental applicants may also be reviewed in light of the violations documented in the case.