Police had arrived after a tip-off to find six people gathered around a table with a large amount of synthetic cannabis products and cash.
Mr Loughrin said as officers went in one man fled outside and attempted to escape the property.
"He threw several small bags of product over the fence as he fled, into a neighbouring childcare centre's playground.
"One our officers chased the offender and tackled him to the ground, still clutching a fistful of dollars as he struggled."
Shortly after several people arrived to buy their next fix even while police were at the scene, Mr Loughrin said.
Police arrested five people including a 37-year-old man due to appear in the Hamilton District Court today charged with selling, offering to sell and possession to supply synthetic cannabis, and a 39-year-old man who faces charges for selling and possession of the drug.
Two other people were given warnings.
In total police seized $6000 cash and 22, 1.2 gram bags of product, as well as scales and weapons.