605 Cannabis and South Dakota reach settlement over alleged Delta 8 doping

605 Cannabis and the South Dakota Department of Health have reached a settlement in which neither party admits wrongdoing after allegations of Delta 8 doping resulted in a suspended license for the SD cannabis company. Additionally, the cannabis company will have to pass an unannounced inspection within 30 days of reopening. Early 2023, 605 Cannabis had its cannabis licenses suspended after an unannounced inspection by the South Dakota Department of Health found, among a total of 19 violations:

• Delta 8 in samples taken from distillate found at 605 Cannabis’s manufacturing facility
• METRC accounting showing flower and distillate “magically” appearing during an immaculate conception period

605 Cannabis filed a lawsuit against the South Dakota Department of Health a few months later, citing over $1 million in losses and an explanation for every alleged violation. According to KELOLAND reporting back on March 31st, 2023:

“605 Cannabis says it has attempted to negotiate a settlement with the DOH, but have been unable to reach an agreement, believing that the primary barrier involves disagreement between 605 and the DOH on the issue of the presence of Delta-8 and terpenes in medical cannabis.”

The two parties finally settled two months later on May 31st, 2023.

Did 605 Cannabis add Delta 8 to their vape cartridges?

According to 605 Cannabis, no, but they did add botanically derived terpenes. The Department of Health cited 605 Cannabis for quoting a total THC percentage on marketing materials that included Delta 8 THC numbers in the count. In their counter lawsuit, 605 Cannabis explained the presence of D8 in their vapes – they told KELOLAND:

“605 says that while the product did contain Delta-8, as previously explained, it was naturally occurring, not added to the final product.”

605 Cannabis’s lawsuit also cited the Department of Health’s inability to provide independent test results that could prove that the quantity of Delta 8 THC found wasn’t naturally occurring. Delta 8 THC does form naturally from degraded Delta 9 THC, and could be expected in distillate made with old flower.

Did 605 Cannabis bring cannabis into South Dakota from out of state?

With this settlement, South Dakota no longer cares about that question. Only immature plants, ones which are sure to have a federally legal THC percentage of less than 0.3%, were supposed to be allowed into the system during South Dakota’s medical marijuana program’s immaculate conception period. What is clear is that 605 Cannabis started off with large quantities of distillate and dried flower that more than likely were grown outside of South Dakota. The settlement stops that common knowledge from becoming formal public record, but anyone who is in the industry can understand why the allegations are sticking.

605 Cannabis and South Dakota Department of Health reach settlement

Whether this is an instance of mistakes canceling each other out, an innocent cannabis company being Goliath’d by an overbearing regulator, a warning that METRC sees all (that you put in it), a clear sign that METRC has issues, or some other option or combination of options both discussed and not discussed… the 605 Cannabis settlement showcases the hazy mire faced by licensees, regulators, and especially patients in poorly designed legal cannabis regimes in states around the country. Though South Dakota and 605 Cannabis have settled, it’s as of yet unclear whether 605 Cannabis will ever regain its reputation with the South Dakotan cannabis community. It’s entirely possible that some federal agency or another comes knocking, too. Read the Final Settlement and listen to the coverage of the whole fiasco on TheCoughyHouse. Thanks to CharlieHempSeed for tipping me off. Featured image from Wikipedia.