420 with CNW — Officials Say Marijuana Dispute Possibly Linked to Six Fatalities in California

Officials believe the recent California desert killings may have resulted from a dispute over cannabis. After responding to a wellness check request outside the El Mirage community, San Bernardino County Sheriff’s deputies recently discovered the bodies of six individuals at a remote dirt crossroad in the Mojave Desert.

Deputies found the victims in and near two vehicles at a remote intersection after one of the victims called the police and said that he had been shot but didn’t know his location. After tracking the victim’s phone’s location, deputies discovered five bodies in a Chevy Trailblazer and a Dodge Caravan as well as a sixth body some distance away.

Sheriff Shannon Dicus has now revealed that law enforcement officers arrested five suspects in San Bernardino County. According to Sgt. Michael Warrick, the incident “appears to be a dispute over marijuana,” although the scale and reason for the cannabis dispute is still unknown.

California voters legalized recreational cannabis in 2016 via Proposition 64, a ballot initiative that allowed adults 21 years of age and older to possess and consume up to an ounce of recreational cannabis, as well as grow up to six plants at home for personal consumption.

The measure was endorsed by many public figures, including Lt. Governor Gavin Newsom and former Los Angeles Mayor Antonio Villaraigosa; the legislation also was thought to cripple the illegal cannabis trade in California.

However, Sheriff Shannon Dicus says the San Bernardino County desert and other places have been under siege by illegal cannabis growers after the measure’s passage. The sheriff says his office executed 411 illegal grow-related search warrants in 2023 and seized 655,000 cannabis plants, 74,000 pounds of processed cannabis and approximately $370 million. Officers executed 11 of these search warrants in the area immediately adjacent to where the murders took place.

The El Mirage incident is the latest act of violence tied to the cannabis black market in remote areas of California where the cannabis black market is flourishing. Law enforcement is becoming increasingly concerned with the rising death toll and general violence involved in these incidents, especially as illegal cannabis spreads across inland desert communities in Southern California.

The California desert region is now home to multitudes of illegal cannabis farms and has seen a marked increase in violent crime, say residents and law enforcement. Sheriff Shannon Dicus observes that the cannabis black market has become a plague in the San Bernardino County region and notes that cartel activity is certainly involved.

This tragedy highlights the safety risks that the black market poses in the jurisdictions where cannabis is legal. Actors such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) are working to avail safe marijuana products to users in lieu of untested products from illicit sources.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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CannabisNewsBreaks – Astrotech Corporation (NASDAQ: ASTC) Introducing Breakthrough Technology, Potential ‘Game Changer’ for the Cannabinoid Industry

Astrotech (NASDAQ: ASTC) is an instrumentation company that is focused on commercializing its proprietary ATi Mass Spectrometer Technology(TM). Its subsidiary, AgLAB Inc., has breakthrough mass spectrometry technology in its AgLAB-1000-D2 mass spectrometer, a ruggedized factory floor analytical instrument designed to quickly and easily analyze complex chemical compounds found in organic plant materials, and the Maximum Value Process(TM) testing method (“AgLAB MVP”). “AgLAB MVP is designed to improve yields and bottom-line profits for hemp (‘CBD’) and cannabis (‘THC’) producers of CBD-THC oils by up to 30%… Using the AgLAB MVP solution, customers are now able to analyze the oils during processing and make near real-time adjustments that can boost the ending-weight yields and potencies,” a recent article reads. “We are proud to introduce the AgLAB MVP, a breakthrough technology that is more accurate and faster than any other testing method. The AgLAB MVP is very fast and is easy to learn with results that more than pay for itself starting on the first day of use. We believe this is a game changer for the cannabinoid industry and processors must use the AgLAB MVP to stay competitive,” said Tom Pickens, CEO and CTO of Astrotech.

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Astrotech is an innovative science and technology company that invents, acquires and commercializes technological innovations while building scalable companies to maximize shareholder value. For more information, please visit www.AstrotechCorp.com.

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CannabisNewsWire (“CNW”) is a specialized communications platform with a focus on cannabis news and the cannabis sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled recognition and brand awareness. CNW is where breaking news, insightful content and actionable information converge.

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420 with CNW — Data Provides Insights on Canadian Cannabis Company Closures in 2023

According to new data given by regulators overseeing the three major Canadian cannabis marketplaces — British Columbia, Ontario and Alberta — an unprecedented number of stores in Canada experienced shutdowns or ownership changes in 2023. The data, sought by MJBizDaily, indicates a retail environment characterized by intense competition in certain places and moderate growth in others.

Alberta saw a shift in dynamics as, for the first time since marijuana was legalized in the province in 2018, more marijuana retail licenses were revoked or not renewed than were issued last year. Forty-eight new marijuana store licenses were issued in the province in 2023, while 62 were not renewed or revoked. This marks a departure from 2022, where 140 new licenses were issued compared to 73 cancellations or nonrenewals.

While the data presents a nuanced picture of store closings, the regulator, AGLC, cautions against drawing straight conclusions about license cancellations and business exits from the industry, noting variables such as relocation.

Alberta is regarded as Canada’s most developed cannabis retail sector, with 749 marijuana providers.

Meanwhile, in Ontario, the country’s largest cannabis market based on sales, new retail cannabis store applications have gradually waned since 2021. More than 1,000 applications for retail stores were submitted in 2021, according to information provided by the regulator, AGCO. More than one-half of applications were lost the next year, to 429 new RSAs, and then another 50% fell to 269 in 2023.

The number of license cancellations has not increased as fast. Only 8 applications were terminated in 2021. In 2022, the number increased to 106, but in 2023, it dropped to 92. According to the data, more retailers are reportedly opening in Ontario than closing.

Only 47 cannabis licenses have been approved in British Columbia (BC) in the last year, which is a drop from the 2022 numbers and around 50% fewer than the 98 permits that were granted in 2021. There were 17 expirations or cancellations in 2023, 6 in 2022 and 12 in 2021, according to data from the LCRB.

Currently, BC has 493 operational cannabis stores. The provincial system does not specifically track store closures; hence, the solicitor general and public safety ministry advise against taking the statistics as an accurate depiction of business closures.

A spokesman for the Public Safety Ministry pointed out that the analysis failed to take license dormancy into consideration, which could result in permanent closures. Dormancy occurs when an establishment ceases operations, requiring license holders to inform the LCRB in 10 days if closure exceeds 90 days.

Stores that fail to disclose closures for less than 90 days and permits that lie idle for up to 24 months also add to the difficulty of keeping track of changes in the business. The number of inactive or unrenewed licenses varies throughout the year due to licensees’ one-year window to reactivate their licenses after they expire.

The continued operation of companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) is testament to the resilience of the marijuana industry in the country amid the challenges that have stood in the way.

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420 with CNW — Spotlight PA Legal Victory Opens Door to Cannabis Research

Following a protracted 15-month court battle in 2022, Pennsylvania’s independent newspaper “Spotlight PA,” which specializes in investigative reporting, was able to obtain information about the requirements for the statewide medical cannabis program. The arduous triumph in 2022 opened the door for an extensive inquiry based on those obtained documents, which were released last year.

According to the state’s Department of Health spokesperson, the data has now been shared with other users, including academic researchers throughout the state. The data has also assisted in improving understanding of the state’s medical cannabis program.

Scientists affiliated with Geisinger Healthcare System, including Brian Piper, an assistant professor specializing in neurology at the Geisinger Commonwealth School of Medicine, have been among the beneficiaries of the data. Piper noted how unusual it is for governments to be so open about giving this data, and he described it as a great chance for his research.

Piper and associates leveraged this data to perform a study that examined the relationship between dispensary physical locations vs. the number of adult users with medical cannabis certifications in particular areas. This study also investigated the relationship between dispensary physical locations vs. the proportion of certificates granted for medical problems for which there is insufficient data to conclusively refute or support the efficacy of medical cannabis as a therapeutic substance.

These researchers described their research as the first scientific study within the United States investigating the relationship between qualifying conditions and dispensary locations.

Leading author Annemarie Hirsch, director of the Center for Community Environment & Health and associate professor at Geisinger’s Department of Population Health Sciences, described the research as an attempt to generate hypotheses that might lead to further scientific inquiry.

The study results were presented in the form of a preprint write-up last August, but as of January, the results hadn’t yet gone through the requisite peer-review procedure prior to publication in a scholarly journal. According to Piper, the preprint is a way to quickly share research results with the larger community so that the information might be of use.

In addition, during a review of the literature on anxiety and cannabis last year, the Medical Cannabis Research Center at Drexel University referenced “Spotlight PA”’s data analysis. The review discovered that anxiety issues are the main reason individuals are qualifying for this program.

“Spotlight PA” made the anonymized data on qualifying conditions accessible for public examination online in December to increase openness. The distributed anonymized data respects ethical norms by protecting the anonymity of specific patients and physicians.

As more studies of this nature are conducted, it could lead major marijuana businesses such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) to come up with specially formulated medical marijuana products targeting specific segments of patients in different state-legal markets.

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420 with CNW — DEA Settles Lawsuit, Agrees to Rehire Agent Fired for Positive CBD Test

The U.S. Drug Enforcement Administration (DEA) recently rehired an agent that was fired almost five years ago after the agent tested positive for tetrahydrocannabinol during a drug screening. Anthony Armour, the agent in question, was terminated in 2019 by the federal agency.

In 2023, Armour filed a suit against the agency in the Federal Circuit’s Court of Appeals, arguing that the DEA had no grounds to fire him without any evidence that he’d intended to break the law. In his suit, Armour asserted that he was using what he thought to be a hemp product that was federally legal as an alternative to opioids to manage chronic pain.

His attorney, Matt Zorn, also argued that the DEA had no policy on CBD at the time of his client’s termination, which came roughly one year after the 2018 Farm Bill federally legalized hemp and its derivatives. It should be noted that in 2021, the DEA did revise its policy for job applicants, including a section inquiring about prior use of CBD and hemp before federal legalization in its questionnaire.

Last week, the court process ended in Armour’s favor, with the agency agreeing to reinstate him with restored pension eligibility as well as back pay. The Department of Justice, through the lawsuit, acknowledged that during his tenure, the plaintiff was an outstanding agent. The department then highlighted that despite this, his careless conduct in CBD consumption did justify his firing by the DEA.

In an interview, Armour stated that he was excited to return to work at the federal agency and hoped to finish his career by aiding the DEA in its mission to remove dangerous drugs from the streets. He also hopes that marijuana will be legalized, given scientific evidence that supports the drug’s legalization.

In an interview last year, Armour revealed that he was in favor of marijuana legalization.

This settlement agreement comes just as the DEA concludes a review into the scheduling of cannabis under a directive issued by President Joseph Biden in 2022. While the Department of Health and Human Services did recommend that marijuana be moved to Schedule III, the DEA has yet to give its final decision on the matter.

The issue on classification was brought up in Armour’s case, with the primary query being whether marijuana rescheduling would prevent the Drug and Enforcement Administration from enforcing its employment penalty.

The agency still defines an illegal substance as any drug under Schedule I or II of the Controlled Substances Act that cannot be prescribed.

As the scheduling review process nears its end, cannabis companies such as Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) will be hoping for an outcome that eases many of the hoops that they have been compelled to jump through in order to operate their state-legal businesses within the broader federal regulations, which aren’t so accommodating.

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420 with CNW — Virginia Senate Committee Advances Cannabis Sales Bill as Deadline Looms

Last week, the Virginia Rehabilitation and Social Services Senate Committee passed a proposal to legalize commercial cannabis sales by a 10 to 5 vote. The bill, SB 448, introduced by Senator Aaron Rouse, aims to initiate the licensing of recreational cannabis businesses starting this July. However, retail licenses would not be accessible until next year.

Subject to voter approval, the measure gives local governments the authority to potentially outlaw commercial marijuana operations.

SB 448 will move on to the Senate’s justice committee next week. Subsequently, it will undergo evaluation in the finance committee, where a crucial deadline of Feb. 5, 2024, looms to keep it in contention. There’s also a crossover date of Feb. 13, 2024, that requires the senate to forward the bill to the house, which is also considering a marijuana sales measure of its own.

During a senate marijuana subcommittee hearing, Rouse’s bill prevailed over an opposing proposal from Senator Adam Ebbin, SB 423. Ebbin’s proposal, which aimed to accelerate adult-use marijuana sales through already-existing dispensaries, was rejected due to worries about possible market dominance by well-established companies.

SB 448 outlines licensing for five business categories, including testing laboratories, cultivators, retailers, manufacturers and transporters. The entities would fall under the regulatory purview of the state’s existing CCA.

Legislators have refrained from debating the bill’s tax components or criminal justice legislation effects thus far, delegating those discussions to the senate’s fiscal and judicial committees.

One amendment suggested during last week’s session is a definition of cultivator size measurement. Cannabis advocates suggest replacing the bill’s maximum of 2,000 plants for the largest cultivators with a cap on canopy square area. However, Rouse objected to this change, claiming that plant counts are simpler to monitor and give small companies greater flexibility.

The subcommittee meeting included a significant amount of debate on social-justice provisions, which emphasized priority licensing for veterans, hemp producers and people from low-income and over-policed communities. Changes that were covered in previous subcommittee sessions included doing away with a clause that prohibited legislators from working in the marijuana industry and forbidding law enforcement from being involved in the business. Additional changes addressed issues such as fairness standards for veterans, testing licensing restrictions to prevent lab shopping and concerns for those impacted by the drug war.

Additionally, the proposal addresses the qualifying standards for marijuana company licenses, prohibiting those with felonies or other convictions involving moral conduct from applying for seven years. There were requests to shorten this exclusion period during the subcommittee meeting.

The legislation arrives against the backdrop of Virginia’s existing legal framework, where recreational cannabis possession, use and personal cultivation are already permitted. Originally a Democrat-controlled legislation from 2021, the framework ran into difficulties due to GOP control over the governor’s office and the house later in the year. The unlicensed market has since expanded as a result of the lack of a newly adopted regulatory framework.

Even if Democrats took back control of both chambers of Congress in November, it is still difficult to pass laws on marijuana sales. There are challenges in reaching a consensus among Democrats and possible resistance from Virginia Governor Glenn Youngkin. Gov. Youngkin has voiced his distaste for cannabis reform and highlighted particular issues, such as labor union regulations for cannabis-related enterprises. Although he first seemed receptive to the notion of commercial sales, more subsequent remarks appear to indicate a change in perspective.

The entire cannabis industry, including sector players such as SNDL Inc. (NASDAQ: SNDL), hope that the launch of adult-use cannabis sales in Virginia happens on schedule so that the residents who aspire to consume this substance can find legal sources to access it.

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420 with CNW — Republican Research Company Publishes Poll Showing Countrywide Support for Cannabis Legalization

A new poll has found that the majority of voters in America are in favor of cannabis being legalized in all states. The poll conducted by the Tarrance Group involved interviews with about one thousand voters. The interviews were carried out Jan. 3–4, 2024.

The poll determined that 57% of those who responded support nationwide legalization of marijuana. Of this number, 35% admitted to strongly supporting the change in policy. It also found that roughly 55% of GOP voters aged 55 and below supported the legalization of marijuana. In addition, 74% of Democrats aged 55 and below also admitted to supporting the drug’s legalization in all states. Among independent voters, 56% stated that they were in favor of countrywide legalization of marijuana.

It should be noted that various measures have been introduced in Congress that would allow states to make their own decisions concerning marijuana while putting an end to the federal criminalization of the drug.

In an interview, U.S. Cannabis Council’s Josh Glasstetter stated that the survey’s results demonstrated that bipartisan support for the federal legalization of marijuana was growing and a generational shift on marijuana was underway. He then noted that during this year’s election, younger voters who strongly supported legalization would be sought after.

Overall, 67% of voters 18 to 44 years of age say they support a countrywide model to legalize marijuana. This is significantly higher than 57% of those aged 45 to 64 and 47% of those aged 65 and older.

Poll results noted that 68% of President Joseph Biden supporters also favor the reform with 48% of GOP members who support Donald Trump sharing these sentiments. With regard to undecided voters, 50% also support the change in policy.

This poll’s results are similar to those from a separate 2023 survey, which determined that support for ending the federal prohibition of cannabis had hit a new high nationally, with 7 in every 10 Americans supporting the reform. A different survey by Lake Research Partners also found that President Biden stood to make great political gains if cannabis was rescheduled under his administrative directive.

The survey was commissioned by the Coalition for Cannabis Scheduling Reform. The survey comes after the U.S. Department of Health and Human Services completed its scientific review in 2023 and gave its recommendation that marijuana be rescheduled. Despite this recommendation, the matter can only be decided by the DEA.

The drug’s rescheduling may not completely phase out the illicit market, however, Another poll found that nearly one-third of cannabis consumers would return to the illicit market if the drug was rescheduled and then made available solely as an approved prescription drug under the FDA.

The evolving regulatory landscape in the United States is being closely watched by companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) so that these companies can quickly ascertain how any changes made could impact their operations.

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420 with CNW — New York Grants Recreational Sales Licenses to Medical Cannabis Companies

The state of New York recently permitted eight medical cannabis companies to sell recreational cannabis. This brings the number of companies that can sell recreational cannabis in the state to more than a dozen. In December 2023, six companies received registered organization dispensing licenses, and in January, the Cannabis Control Board approved licenses for two more companies, among them Green Thumb Industries.

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), a company based in Chicago, entered the New York’s marijuana market in 2019, following its acquisition of Fiorello Pharmaceuticals. Currently, the company operates more than 90 recreational marijuana dispensaries in 15 states and 4 medical dispensaries under Fiorello’s medical marijuana license.

Green Thumb’s location in Henrietta, called RISE, is the sole dispensary under the company to have received a license to sell recreational marijuana to customers in New York. The company’s senior VP of Revenue, Dominic O’Brien, stated that the company had been serving medical cannabis patients for almost give years in the state and that would remain a priority for the organization.

While a large share of Green Thumb’s market is still medical marijuana patients, O’Brien noted that he was optimistic and excited about bringing recreational marijuana products already sold in other states to RISE, among them EVO, Incredibles and Dog Walkers.

Medical cannabis providers have been part of the state’s marijuana industry since the implementation of its medical cannabis program in 2016. Medical companies are vertically integrated, which allows them to cultivate, process and sell their own produce under a single license.

In the past, some independent growers have raised concerns that the presence of medical companies might drive them out of New York’s burgeoning recreational market. This sentiment isn’t shared by all, however. The director of policy for the Office of Cannabis Management, John Kagia, states that the companies’ inclusion may help expand the state’s retail capacity at a faster pace.

New York has, in the past, struggled with access to licensed retail dispensaries. In August 2023, a court injunction left many applications that had been submitted to the state’s Conditional Adult-Use Retail Dispensary in limbo, which prevented the Office of Cannabis Management from issuing any other licenses until the injunction was lifted a couple of months later by the supreme court.

With the issue now sorted, Kagia expects that New York may issue more than a thousand licenses to manufacturers, growers, retailers and distributors in the coming months. With these changes, he notes that retailers that sell both recreational and medical marijuana will be required by law to stock products from other suppliers in the market.

Currently, regulations require that all recreational and medical marijuana sold by licensed retailers in New York must be grown in the state.

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420 with CNW — Poll Suggests 32% of Americans Would Resort to Black Market If Cannabis Only Available in Pharmacies

A recent poll indicates that almost one-third of marijuana consumers nationwide would return to purchasing from illegal sources if marijuana were to be rescheduled without preserving legal state marketplaces. The survey, conducted by a website that facilitates medical cannabis physician evaluations, involved nearly 800 respondents.

NuggMD.com reported that its survey findings showed that if cannabis was rescheduled, restricting its legal access to FDA-approved prescription medications, 32% of participants would head to the black market. An estimated 55% of respondents preferred using pharmacies to obtain cannabis, indicating a large preference for legal sources.

Last year, the U.S. Department of Health and Human Services (HHS) made a recommendation to the U.S. Drug Enforcement Administration (DEA), urging the agency to reclassify marijuana from Schedule I to III of the CSA. However, rescheduling would not automatically grant cannabis the status of a legitimate prescription medication. This is because the FDA adopts a distinct drug-approval process and typically excludes botanical substances as prescription drugs.

Despite this, the poll explores how cannabis users might react if their only access is through pharmacies, treating cannabis similarly to other Schedule III drugs. Drugs in this category are usually prescribed and available through pharmacies or under a physician’s supervision. The survey also provides insight into how users feel about possible marijuana schedule changes. Although 47% of respondents think that rescheduling wouldn’t impact their access, a sizable number — 77% of respondents — would rather purchase dispensary cannabis than depend on FDA-approved pharmacies.

Additionally, the poll reveals opinions about federal regulation. Significantly, 69% of respondents prefer separate state markets to a single federal market, and 85% of respondents support removing marijuana from the CSA rather than moving it to Schedule III.

Consumers also express a reluctance to involve the FDA or pharmaceutical companies in marijuana regulation, signaling a strong trust in state-controlled markets. Interestingly, a significant portion is willing to obtain marijuana, even if it means ignoring legal restrictions.

Although reclassifying cannabis from Schedule I to III could facilitate medical use and encourage the creation of FDA-approved medications, the process of doing so takes time. State-licensed dispensaries will probably continue to be accessible for both recreational and medical consumers until then.

There is also skepticism about products, such as raw cannabis flower, gaining approval. This skepticism highlights the need for substitute medical-grade products that can be purchased from pharmacies.

Despite potential changes, legal state markets are expected to remain, providing accessibility and lowering reliance on the black market.

It remains to be seen how the implementation of the expected rescheduling of marijuana will affect companies such as Innovative Industrial Properties Inc. (NYSE: IIPR) that had found a lucrative niche serving plant-touching cannabis companies.

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420 with CNW — Cannabis MSOs Set Sights on Growing Wholesale Divisions

A top cannabis executive recently revealed that several cannabis multistate operators (MSOs) intend to prioritize their wholesale divisions in 2024. Jamie Mendola, the national head of wholesale/purchasing, western region regional manager and chief business development officer at Florida-based multistate operator Ayr Wellness, says that while MSOs focused on wholesale last year, the division will become an even greater priority this year.

Mendola notes that reduced capital will decrease the odds of company growth through mergers and acquisitions or by obtaining more licenses, forcing MSOs to turn their focus to wholesale. He adds that with many vertically integrated cannabis businesses in states such as New York, Massachusetts and Illinois reaching or nearly reaching their total number of retail licenses, wholesale will take higher priority.

The cannabis executive predicted that the “vast majority” of the MSOs in America’s state-level cannabis sector are focusing on organic growth. This growth will likely come from the wholesale division, Mendola said, especially in markets that still haven’t transitioned from medical marijuana to recreational cannabis. However, MSOs will have to overcome challenges such as low cannabis prices to grow their wholesale divisions.

Mendola notes that in Ayr’s case, a double-digit increase in wholesale sales volumes in 2023 was significantly undermined by a double-digit reduction in wholesale prices. Although the company saw notable growth through the end of the year, Mendola says price compression masked a lot of this growth. Limited vertical integration among the newest entrants into the cannabis retail market could help stabilize wholesale cannabis prices as these retailers will need wholesale partners to supply products regularly, Mendola says.

Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) in New York is also hoping the state’s increasing number of retail cannabis retailers leads to positive headwinds for the company’s wholesale division. The company’s CEO Matt Darin said in a recent interview that Curaleaf had already begun selling its cannabis products in the wholesale market, likely in anticipation of the flood of demand expected to come from the retail division.

Unfortunately, this strategy won’t be as effective in mature markets such as Massachusetts where both retail and wholesale divisions are at capacity. MSOs in Massachusetts built massive cultivation facilities when there was easier access to capital and cannabis prices and averaged $3,000 per pound.

Ben Burnstein, a senior associate in charge of corporate development at New York-based cannabis wholesale platform Leaflink, says wholesale prices have now dropped to around $1,400 per pound, partly due to reduced foot traffic in brick-and-mortar stores.

Wholesalers can ensure they remain competitive in the increasingly saturated market by building value for their retail partners through varied product offerings, reliability and consistency, Dazed cannabis cofounder Chris Vianello says.

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