Los Angeles opens the following marijuana licensing spherical for 100 retail permits, Missouri growers and dispensary licensee candidates face fierce competitors, Illinois restricts cannabis electrical energy and water use for MJ growers – and extra of the week’s high cannabis enterprise information.
100 MJ retail permits up for grabs in L.A.
The frenzy is on for one more 100 marijuana retail enterprise licenses within the huge Los Angeles market as town’s Division of Hashish Regulation (DCR) started taking functions.
The company might have acquired as many as 1,600 functions since that’s what number of potential licensees handed the prevetting course of.
MJBizDaily takeaway: That is the newest in a protracted line of chaotic strikes by L.A. in a yearslong saga, with metropolis officers aiming to get a deal with on the sprawling marijuana trade – a lot of which is unlicensed.
So far, solely 187 licensed authorized retailers exist within the metropolis, and every acquired first precedence as longstanding tax-paying outlets which have operated since no less than 2007.
Nonetheless, it’s removed from sufficient to satisfy demand within the metropolis, the place loads of illicit outlets serve prospects.
As a result of the newest licensing spherical can be first-come, first-served, there was apparently a rush when the window opened Tuesday morning, in response to social media chatter.
Which means there’s potential for lawsuits, which has change into one thing of a norm in markets with a restricted variety of enterprise permits.
Competitors heated for Missouri MMJ licenses
A breakdown of medical marijuana license functions in Missouri exhibits how aggressive it’s to acquire a license within the state, particularly within the grower and dispensary classes.
State regulators additionally reported that they accepted greater than 100 functions after the Aug. 24 deadline from those that had skilled technical difficulties submitting varieties.
MJBizDaily takeaway: Greater than 2,100 candidates are competing for as much as 348 grower, processor and dispensary licenses, and primarily based on pre-applications, many candidates are multistate operators or rich locals.
State regulators stated they are going to launch extra details about the candidates in coming weeks.
Marijuana Enterprise Every day initiatives the Missouri MMJ program might generate $175 million-$275 million in annual gross sales inside a number of years of the launch.
Illinois unveils sustainability necessities for MJ growers
Regulators in Illinois are tightening the legal guidelines governing electrical energy and water utilization for cannabis cultivators.
Trade watchers imagine the brand new sustainability necessities, signed by Gov. Jay Pritzker, might show a few of the strictest in america.
The legislation limits the quantity of water and electrical energy growers can use in addition to setting necessities for water runoff and wastewater.
The legislation applies to each leisure and medical marijuana companies in Illinois, the place adult-use gross sales are scheduled to start Jan. 1.
MJBizDaily takeaway: Illinois will not be alone in requiring stricter sustainability necessities.
Not solely state governments, however native municipalities nationwide are limiting electrical energy and water utilization, in addition to proscribing pesticides.
This pattern doubtless will proceed amid local weather change considerations.
The stricter and ever-changing rules, nevertheless, place a monetary burden and uncertainty on many growers already dealing with slim revenue margins.
Medication Man Applied sciences snaps up ninth acquisition this yr
Medication Man Applied sciences is probably not alone in its acquisition binge in current months, but it surely’s undoubtedly been one of the vital public about enlargement strikes.
The Denver-based firm is taking full benefit of a change in state legislation that allows out-of-state funding cash to circulate into the Colorado marijuana trade, and in consequence, Medication Man Applied sciences introduced its ninth acquisition of the yr this week.
Latest acquisitions will develop its retail footprint from simply 4 storefronts to 12.
MJBizDaily takeaway: The change in state legislation that has allowed Medication Man Applied sciences to amass a number of firms might be transformative for the Colorado cannabis trade panorama.
The invoice was signed into legislation in Might, and the measure was cited by Medication Man Applied sciences in current bulletins because the gateway that led to its current purchases of a number of longstanding Colorado MJ outlets.
Prior to now week, the corporate introduced it was spending almost $44 million in mixed money and inventory to amass eight storefronts from Starbuds and Colorado Harvest Co.
The legislation “ushered within the subsequent part of improvement” for the Colorado trade, Tim Cullen, one of many founders of Colorado Harvest, stated in a information launch.
Which means extra mergers and acquisitions are doubtless on the best way in Colorado in addition to elevated analysis and product improvement and extra development usually since capital will doubtless maintain flowing into the market.
Vegas fuels growing Nevada MJ gross sales
Nevada marijuana gross sales rose by 20% within the 2019 fiscal yr ended June 30, leaping from $530 million to $639 million.
Clark County, the place Las Vegas is situated, continues to generate 80% of all MJ gross sales within the state.
The one different county of notice is Washoe, dwelling to Reno, which garnered an almost 15% gross sales share.
MJBizDaily takeaway: The figures present that MJ gross sales in Nevada have but to peak, however 95% of the exercise stays within the heavy vacationer areas of Las Vegas and Reno.
State approvals that may double the variety of leisure cannabis shops statewide have been stalled in a court docket case.
However a few of these shops now have been given the go-ahead, which is predicted to supply an extra enhance to the market, particularly in some new retail areas.