A dagga shop employee is expected to appear in the Knysna Magistrates court on Tuesday after police swooped in on his 'Dagga shop' in Sedgefield.
The shop reportedly does business as a nursery, health and a coffee shop situated on the main road of the town.
The small shop was selling cannabis oil, rusks and cakes made of cannabis.
The 31-year-old suspect was arrested by members of the Outeniqua K-9 unit two hours after he opened his shop for the day on Saturday.
Goods with an estimated value of R80,000 were confiscated including various forms of packaged cannabis.
Southern Cape police spokesperson, Captain Malcolm Pojie says despite the recent changes to legislation, legalising the private use and cultivation of marijuana; the selling of these products remains illegal.