Cura Partners, a company that agreed to be acquired by Curaleaf (OTC:CURLF), has been fined for mislabeling some of its products.

Cura Partners, which bills itself as the "largest cannabis oil company in Oregon and California," reached a settlement with the Oregon Liquor Control Commission (OLCC) on the matter. In the arrangement, Cura Partners is admitting that it mislabeled 186,152 units of its product. In numerous cases, the company apparently did not state the presence of botanical terpenes or MCT oil, ingredients used in vape products.

A vape pen next to marijuana leaves.

Image source: Getty Images.

In its marketing, Cura Partners at times claimed that different ingredients considered more preferential were used in its products.

For its oversights, Cura Partners will pay a fine of $110,000, a record in the history of the OLCC. The regulator said it wasn't apparent that the company's transgressions presented a health risk to users, so it did not mandate a halt in sales of the affected products.

The Portland Business Journal quoted from a letter it obtained written by a Cura Partners lawyer. The lawyer blamed "a communication problem," likely stemming from one or more employees, for the mistakes.

Neither Cura Partners nor Curaleaf, a popular marijuana stock, has yet officially commented on the settlement.

Despite the financial hit, the settlement could end up being good news for both. Curaleaf recently said that the long-gestating Cura Partners acquisition should close by Feb. 1, citing the transfer of Cura Partners' Oregon license. It's speculated that the settlement will go some way toward making that happen.

Curaleaf's stock closed up by nearly 6% on Thursday.

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