NJ revokes Harmony’s licenses to grow, manufacture recreational cannabis

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Harmony Foundation’s licenses for cultivating and manufacturing recreational cannabis were revoked by the New Jersey Cannabis Regulatory Commission over unpaid fees.

During its June 1 meeting, the board voted 5-0 to vacate a Dec. 2, 2022, decision that granted the Hudson County-based dispensary’s ability to grow and manufacture adult-use plants, saying it owes $700,000 for those licenses.

In receiving approval seven months ago to expand operations to include recreational sales, Harmony’s Secaucus location received licenses for Class 1 Cultivation, Class 2 Manufacturing and Class 5 Retailer, while its site in Lafayette was awarded Class 1 Cultivation and Class 2 Manufacturing licenses.

According to regulators, Harmony made a $100,000 payment toward its Class 5 retail license on Feb. 21, but has yet to pay what it owes for its Class 1 and Class 2 licenses.

Harmony, which is the only recreational dispensary open in Hudson County, will still be able to offer adult-use cannabis, but must purchase its supply from other growers in the state.

The dispensary’s ability to sell and grow medicinal cannabis remains unchanged.

CRC Chair Dianna Houenou noted that Harmony can re-apply if it wishes to continue cultivating and growing recreational products.

Following Thursday afternoon’s meeting, Shaya Brodchandel, the chief executive officer and founder of Harmony, said in a statement, “We are baffled by today’s decision.”

Brodchandel, who is also president of the New Jersey Cannabis Trade Association, went on to say, “If we had been notified that this action was being considered, we would have gladly explained that we are in complete compliance with the Feb. 15 agreement we reached with the CRC in terms of paying our license fees. This same agreement allowed us to launch personal use retail in our Secaucus dispensary.”

“The rash decision that was taken is an alarming wake up call to the New Jersey entrepreneurs that are seeking to work within the confines established by state regulators to further grow the cannabis industry,” said Brodchandel, a well-known mentor for those who want to establish themselves in the legalized market. 

He declined to elaborate on what the payment agreement was or whether there are plans to appeal the decision.

The CRC did not immediately respond to a request for comment Friday.

“At this point Harmony will continue serving its patients and customers, and at the same time working to help grow the cannabis industry ecosystem in New Jersey,” Brodchandel said.

The move comes about a month-and-a-half after the CRC declined to renew annual licenses for Curaleaf, one of the biggest players in the state’s emerging industry. That decision – which would have prohibited Curaleaf from selling adult-use cannabis at two of its three storefronts and impacted operations at both of its South Jersey grow facilities – was later reversed during an emergency CRC meeting.