Arizona Dispensary Chain to Stop Accepting Products Tested by Two Labs Cited for Inaccurate Testing Results

An Arizona cannabis dispensary chain will no longer accept products tested by two laboratories that have been cited by state regulators for inaccurate testing results, the Arizona Republic reports. In an email obtained by the Republic, Story Cannabis said it would no longer accept products from Kaycha Labs and Level One Labs “with a Certificate of Analysis test date on or after October 1, 2026” due to “multiple compliance violations and concerns related to the testing.” 

Kaycha was recently fined $88,500 for inaccurate testing results, the report says, while Level One was found to have inflated the potency of its samples. 

In the email, Nikole Samuelson, the state retail buyer for Story, which operates 11 dispensaries in Arizona and in three other states, said the company “takes the quality and control of the products sold in its stores very seriously.”    

In an email to the Republic, George Griffeth, Level One co-founder and CEO, said the labs problems were due to “inadvertent” software problems and “human error.” He said he believed that Story may reconsider its position.  

“Story has expressed general compliance concerns, but it has not explained to Level One the specific standards underlying its decision or how it evaluated comparable findings at laboratories. We look forward to a constructive conversation with Story about a clear path to reinstatement. We are confident that a fuller understanding of the facts and our response will give Story a sound basis to reverse its decision.” — Griffeth, in an email to the Republic 

Kaycha Labs did not comment on the email.