Cannex Nevada LLC could lose marijuana license – Las Vegas Review-Journal

CARSON CITY — A marijuana testing lab was intentionally passing tainted cannabis products that should have failed and inflating THC results for clients, state regulators said in a new complaint Tuesday.

The Cannabis Compliance Board filed the complaint against Cannex Nevada LLC (also known as RSR Analytical Laboratories), a Las Vegas-based testing facility that the state has twice suspended since 2017 for failing to follow state regulations and which was subject of two health advisories in 2019 and 2020 after it allowed tainted products to pass and be sold in retail dispensaries.

“Rather than protecting consumers through accurate and honest testing, Cannex implemented testing processes that were designed to protect the monetary assets of their clients without regard for consumer safety,” the complaint said.

Regulators are asking the board to revoke the company’s marijuana business licenses, impose a fine of $62,500, and ban the company from the industry for nearly 10 years.

Cannex’s managing member, Ric Rushton, could not be immediately reached for comment Tuesday. The Cannabis Compliance Board said that it “does not comment on pending disciplinary matters.”

Dozens of violations

According to the complaint, which lists dozens of violations found by state inspectors, Cannex had been performing unauthorized retesting for clients “with the intent to pass products that should have failed” tests for microbials and heavy metals, and “engaging in practices designed to inflate THC potency.

The state suspended Cannex’s license in December 2019 after discovering dozens of products that the lab had given a passing result and were being sold in dispensaries never should have made it to the stores as they contained high levels of yeast and mold, prompting the state to issue a series of public health warnings about the products.

The complaint said it found 232 instances of unapproved retesting of products that had

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