Los Angeles opens the subsequent 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 prime cannabis enterprise information.
100 MJ retail permits up for grabs in L.A.
The push is on for one more 100 marijuana retail enterprise licenses within the large Los Angeles market as town’s Division of Hashish Regulation (DCR) started taking functions.
The company could 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 an extended 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 approved authorized retailers exist within the metropolis, and every acquired first precedence as longstanding tax-paying retailers which have operated since a minimum of 2007.
Nonetheless, it’s removed from sufficient to fulfill demand within the metropolis, the place loads of illicit retailers serve clients.
As a result of the newest licensing spherical can also be first-come, first-served, there was apparently a rush when the window opened Tuesday morning, in line with social media chatter.
Meaning there’s potential for lawsuits, which has turn 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 based mostly on pre-applications, many candidates are multistate operators or rich locals.
State regulators mentioned they are going to launch extra details about the candidates in coming weeks.
Marijuana Enterprise Day by 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 consider the brand new sustainability necessities, signed by Gov. Jay Pritzker, might show among the strictest in the USA.
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 just isn’t alone in requiring stricter sustainability necessities.
Not solely state governments, however native municipalities nationwide are limiting electrical energy and water utilization, in addition to limiting pesticides.
This development probably will proceed amid local weather change considerations.
The stricter and ever-changing laws, nonetheless, place a monetary burden and uncertainty on many growers already dealing with slim revenue margins.
Drugs Man Applied sciences snaps up ninth acquisition this yr
Drugs Man Applied sciences is probably not alone in its acquisition binge in current months, however it’s positively been probably the most 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 move into the Colorado marijuana trade, and because of this, Drugs 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 Drugs Man Applied sciences to accumulate a number of firms may very well be transformative for the Colorado cannabis trade panorama.
The invoice was signed into legislation in Might, and the measure was cited by Drugs Man Applied sciences in current bulletins because the gateway that led to its current purchases of a number of longstanding Colorado MJ retailers.
Previously week, the corporate introduced it was spending practically $44 million in mixed money and inventory to accumulate eight storefronts from Starbuds and Colorado Harvest Co.
The legislation “ushered within the subsequent section of improvement” for the Colorado trade, Tim Cullen, one of many founders of Colorado Harvest, mentioned in a information launch.
Meaning extra mergers and acquisitions are probably on the best way in Colorado in addition to elevated analysis and product improvement and extra progress normally since capital will probably preserve flowing into the market.
Vegas fuels rising 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 be aware is Washoe, house to Reno, which garnered a virtually 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 anticipated to supply a further enhance to the market, particularly in some new retail areas.