New York State has halted the sale of cannabis vape cartridges and pre-rolled joints from two major producers as regulators investigate whether the products were manufactured using unauthorized ingredients and processes.
The Office of Cannabis Management is reviewing whether Stiiizy and Mfused — two of the most prominent names in the cannabis vape sector — used marijuana sourced from unlicensed growers outside New York, in violation of state rules. Regulators have also suspended the sale of affected items, valued at approximately $10 million, while the investigation continues.
Under New York’s cannabis law, all products sold in the state must be derived from marijuana grown, processed, and packaged entirely within state borders, a framework designed to bolster local businesses and preserve supply chain transparency.
According to the allegations, the oil used in vape products sold by Stiiizy and Mfused was supplied by Omnium Health, a third-party processor that may have used out-of-state cannabis. Representatives for all three companies told The New York Times their products are safe and fully compliant with the law.
A spokesperson for Omnium said logistical mistakes led to confusion over the origin of the materials. “The issue stemmed from the corporate address listed on documentation, rather than the actual extraction site,” the company said. “It has been confirmed that all extraction was performed at a licensed facility previously inspected by the Office of Cannabis Management and equipped with compliant extraction systems.”
Omnium also supplies cannabis oil to other brands, including Animal, Bodega Boyz, Muha Meds, Smoke, and To The Moon.
State regulators have not yet issued a formal response. Should the investigation confirm the use of out-of-state materials, Omnium Health could lose its license to operate in New York. Stiiizy and Mfused would also be barred from continuing sales, and the seized products could be ordered destroyed.
