Cannabis lounges are a way for stoners to connect without breaking public consumption laws—think of a bar, but for smoking. There is one major difference between the two, though: cannabis lounges in many states are not licensed to sell their own weed. Cannabis fans are welcome to bring their own products and smoke, or buy products at the adjacent dispensary, but often cannot get new flower or edibles at these establishments. Tetra, a Denver cannabis lounge, is facing legal trouble after being accused of breaking this rule and allegedly selling both marijuana and psilocybin at an event.
RELATED: New Jersey hits major weed milestone
Tetra was issued a show-cause order after being inspected by the state on April 20, April 28, and July 10—two of these dates, 4/20 and 7/10, mark unofficial weed holidays. Allegedly, during the 4/20 visit, an inspector saw booths inside the building selling weed, booths outside selling psilocybin and DMT, and booths “just outside the licensed premises” giving away psilocybin-infused gummies. According to the order, the gummies were being sold by people unaffiliated with Tetra.
“The inspector also observed one person consuming a marijuana cigarette off the licensed premises, outside of the open gate on the southwest corner of the licensed premises,” states the show cause order, according to FOX31.
The inspectors also reported customers consuming cannabis inside the building, which, according to them, “lacks a Certificate of Occupancy, which would prohibit any patrons from being inside the building.”
Tetra fired back at the city of Denver on its now-private Instagram, claiming that it’s “blatantly lying” and “discredit[ing] a minority owned small business that in 7+ years has 0 reports of violence, drug overdoses, or any other criminal activity.” The lounge also shared security footage from its 7/10 celebration in an attempt to prove that the city is lying.
Tetra did not respond to a request for comment to GreenState before publication.
The city said the lounge can operate during the ongoing legal battle, and reiterated that it is only licensed to solicit patrons to pay a fee to bring their own weed to smoke on the outside patio.
Tetra’s hearing will take place on October 10. The city told FOX31 that approximately 90 percent of administrative show cause cases end in settlement agreements—according to Denver, the city is more focused on ensuring compliance than revoking licenses.
The lounge has alleged that one of the city inspectors ingested psilocybin during inspections. The city told FOX31 that the employee has been terminated.
RELATED: Destination high: American cannabis social lounges worth visiting
While Tetra isn’t guaranteed to lose its license over this blunder, this case highlights the difficulty of running successful cannabis-focused businesses. Regulations are stiff, and weed businesspeople have to be hypervigilant to avoid legal challenges, especially if they operate in cities that are stricter than Denver.