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America January 13, 2026 3 mins read

Connecticut Cannabis Firms Agree to $416,000 Settlement Over Merger Review Violations

America ı By Ahmed Boughalleb

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Connecticut Cannabis Firms Agree to $416,000 Settlement Over Merger Review Violations

Four Connecticut cannabis companies and their principals have agreed to pay $416,000 to settle allegations that they violated state marijuana, antitrust, and unfair trade practices laws by consolidating operations before completing a mandatory merger review, the Connecticut attorney general’s office announced Monday.

Attorney General William Tong said dispensary licensees operating under the Crisp Cannabis brand in Bridgeport, East Hartford, and Cromwell improperly transferred operational control to acquiring company Mohave CT LLC more than 100 days before seeking state approval, in violation of the Responsible and Equitable Regulation of Adult Use Cannabis Act.

The alleged conduct, known as “gun jumping,” can trigger civil penalties of up to $25,000 per day under Connecticut law. Tong said the enforcement action marks the first of its kind under the state’s premerger notification statute.

“When the legislature created Connecticut’s adult use cannabis market, it built in safeguards to protect competition and prevent market concentration before it starts,” Tong said in a statement. “Our goal is not only to hold companies accountable, but to ensure that all participants understand the rules designed to keep Connecticut’s cannabis industry fair, transparent, and competitive.”

The settlement, dated Friday, resolves claims against Mohave CT LLC, its parent Devine Holdings LLC, and three dispensary licensees known as Debbie’s, Sara’s, and Ty’s, which began operating under the Crisp Cannabis name in March and April 2025. Despite their long-standing business relationships, the parties did not file a notice of material change until May 6, according to the attorney general’s office.

State law requires parties to submit notice and observe a minimum 30-day waiting period before transferring control, during which the attorney general may review the transaction. The settlement states that the companies effectively transferred beneficial ownership before completing that process.

Investigators highlighted the role of Andrew James Simonow, a minority owner of Devine Holdings and principal of Tigersun Services Inc., which does business as GC National. Simonow and his company had construction management agreements with the dispensaries and a consulting agreement with Mohave.

Although Mohave described Simonow as a contractor responsible for building out the dispensary locations, investigators said his role extended well beyond that scope. According to the settlement, Simonow exercised broad operational and managerial authority, including decisions related to branding, staffing, compliance communications, and regulatory filings, and presented himself publicly as a central decision maker for the group.

State investigators said the consolidation also enabled the sharing of pricing, sales data, and trade secrets, conduct they allege violated the Connecticut Antitrust Act and constituted an unfair method of competition under the Connecticut Unfair Trade Practices Act.

Under the settlement terms, one quarter of the $416,000 penalty must be paid within 30 days. The remaining $312,000 will be suspended for three years, provided the respondents comply with the agreement, which includes implementing an antitrust compliance program and avoiding future violations.

The respondents did not admit wrongdoing but cooperated fully with the investigation, according to the attorney general’s office.

Counsel for the companies did not respond to requests for comment.

Connecticut was represented by Julián Quiñones and Nicole Demers of the Office of the Attorney General. The respondents were represented by Benjamin H. Pomerantz of Carmody Torrance Sandak and Hennessey LLP.

The matter is In the Matter of the Investigation by William Tong, Attorney General of the State of Connecticut, before the Connecticut Office of the Attorney General.

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Ahmed Boughalleb

Ahmed is a sales development and international trade expert with decades of experience in business, acquisitions and mergers. He writes about financial and business news with a focus on the U.S. market.

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