Attorney General William Tong announced Monday a $416,000 settlement with three cannabis businesses operating under the Crisp Cannabis brand — and the company seeking to acquire them — marking the first enforcement action of its kind under Connecticut’s cannabis merger notification law.

The settlement, signed Jan. 9, resolves allegations that licensed cannabis establishments in Bridgeport, East Hartford and Cromwell, along with the company acquiring them, Mohave CT LLC, violated Connecticut’s Responsible and Equitable Regulation of Adult-Use Cannabis Act, the Connecticut Antitrust Act and the Connecticut Unfair Trade Practices Act.

The attorney general’s investigation found the businesses engaged in “gun jumping” — prematurely transferring operational control and beneficial ownership among multiple licensees before filing the required notice of material change with regulators.

Mohave, the acquiring entity, assumed decision-making authority and coordinated operations, branding and staffing of the three establishments for more than 100 days before notifying regulators, according to the investigation.

This coordination effectively eliminated the licensees’ competitive independence and consolidated them into a single enterprise before the attorney general’s merger review could occur, violating notice and waiting-period requirements, investigators found.

Connecticut law allows for penalties of up to $25,000 per day for gun-jumping violations.

According to the settlement, Andrew James Simonow, operating through Tigersun Services Inc. doing business as GC National, was initially engaged as a general contractor but “exercised operational and managerial authority across all licensees, including decisions relating to site design, branding, staffing, compliance communications, and regulatory submissions.”

The investigation also identified violations of Connecticut’s antitrust and competition laws. The businesses and their principals allegedly exchanged competitively sensitive business information, including pricing and operational data, aligning commercial strategies and reducing uncertainty among nominally independent competitors.

“When the legislature created Connecticut’s adult-use cannabis market, it built in safeguards — like the 2021 notice of material change pre-merger notification statute — to protect competition and prevent market concentration before it starts,” Tong said. “This is the first enforcement action of its kind under that framework, and it underscores both the growth of this industry and the seriousness of the obligations that come with it.”

The respondents agreed to jointly pay the $416,000 civil penalty, including $104,000 due within 30 days.

The respondents also agreed to implement a comprehensive antitrust compliance program and refrain from future violations. They did not admit wrongdoing under the settlement.

The settlement remains in effect for three years, during which the attorney general’s office will monitor compliance. The respondents cooperated with the investigation, Tong’s office said.

The respondents are: Debbie’s Dispensary, which holds both a retailer license at 500 Main St., East Hartford, and a microcultivator license in Norwich; Sara’s Dispensary, which holds a retailer license at 33 Berlin Road, Cromwell; and Ty’s Dispensary, which holds a hybrid retailer license at 1234 Huntington Turnpike, Bridgeport.