The Cannabis Regulatory Agency (CRA) has revoked 20 medical marijuana Class C grower licenses held by GP Holdings LLC, doing business as Millie Montana Industries, and imposed a $2 million fine following findings of extensive violations at its Clare operation. The licenses were associated with a facility at 9684 Russell Road. All 20 licenses were closed before the final order was issued and have now been revoked.
The CRA’s investigation found that GP Holdings transferred packages to a licensed processor under manifests identifying the contents as marijuana flower. Samples from three packages contained no THC and, according to the findings, resembled and had the consistency of dirt and mulch. Samples from additional packages appeared to be shake, kief, or post-harvest plant waste despite being identified on the transfer manifests 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,” said CRA Executive Director Brian Hanna. “The statewide monitoring system depends on licensees accurately reporting what they grow, possess, and transfer. When a licensee misrepresents its product, disregards tracking requirements, and fails to maintain basic safeguards, the consequences must reflect the seriousness of that conduct.”
The investigation also identified numerous other violations involving the company’s inventory, operations, security, and recordkeeping, including:
- Incorrect product descriptions and weights on transfer manifests
- Untagged marijuana flower, mulch, ground plants, and biomass stored in bags, bins, barrels, and outdoor storage units
- The transfer of untested marijuana packages to a processor without CRA approval
- The replacement of nonviable plants with seeds brought into the facility without transfer manifests
- Inaccurate and delayed entries in the statewide monitoring system
- Storage units without alarm systems, adequate surveillance coverage, or commercial-grade locks
- Failure to maintain the required surveillance recordings
- Failure to provide required standard operating procedures, employee records, and a waste-disposal plan
- The addition of storage units, an industrial hemp dryer, and an industrial grinder without CRA approval
The company stipulated during an October 2025 contested case hearing 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 (ALJ) recommended that the CRA find the company responsible for all 35 alleged violations:
“…The undersigned ALJ proposes that the CRA issues a Final Order as follows: That Respondent has violated the MMFLA and/or the administrative rules promulgated thereunder as alleged in Counts 1-35 of the First Superseding Formal Complaint, dated August 16, 2022, and impose a reasonable sanction in proportion to the nature of the violation, taking mitigating circumstances into account…”
The final order and accompanying case documents – which can be found in full on the CRA website – revoke licenses GR-C-000901 and GR-C-000906 through GR-C-000924 and orders GP Holdings to pay the $2 million fine. Any future license applications involving the company’s supplemental applicants may be reviewed in light of the violations documented in this case.
