By Dispensary Chain Bars Products From Two Labs
Story Cannabis, an Arizona dispensary chain, will no longer accept products tested by two laboratories cited by state regulators for inaccurate testing results, the Arizona Republic reports.
In the email, Story cited “multiple compliance violations and concerns related to the testing” as the reason for the change. Kaycha Labs was recently fined $88,500 for inaccurate testing results, according to the report. Level One Labs was found to have inflated the potency of its samples.
Story operates 11 dispensaries in Arizona and in three other states. Nikole Samuelson, the state retail buyer for Story, said the company “takes the quality and control of the products sold in its stores very seriously” in the email.
Lab Executive Responds to Decision
George Griffeth, Level One co-founder and CEO, addressed the decision in an email to the Republic. He said the lab’s problems were due to “inadvertent” software problems and “human error.” Griffeth also said he believed 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 said in an email to the Republic.
Kaycha Labs did not comment on the email, according to the report. Neither lab’s products will be accepted by Story once the October 1, 2026 testing date takes effect.
What Comes Next
Level One is seeking a conversation with Story about reinstatement. Griffeth expressed confidence that his company’s response could lead Story to reverse its decision.
Kaycha Labs has not publicly responded to the dispensary chain’s announcement. The $88,500 fine against Kaycha was issued by state regulators for inaccurate testing results. The state’s findings against Level One involved inflated potency figures for its samples.
Story Cannabis has not indicated whether it will reconsider its position. The company’s decision affects products sold across its 11 dispensaries in Arizona and its locations in three other states.
