New Distributor Role Could Destroy Legal Cannabis Industry in California

Steve DeAngelo of Harborside started speaking out against a new aspect of California’s new Medical Marijuana Regulation and Safety Act  (MMRSA) in March, suggesting it could triple the prices of Cannabis due to the inclusion of a new type of license, the distributor. He took the time to explain his thinking this week in this video that was included in a Green Flower Media story that discussed the problem in great detail:

His concerns are that the mandatory inclusion of distributors will add 15-35% to each step of the process, which, by his calculations, could double or triple the prices of cannabis in legal dispensaries, especially on extracted goods that go from grower to extractor to producer to dispensary, with the distributor taking a cut at each step of the way. The consequences would likely be patients moving to the black market and tax revenue goals for the state not being achieved, threatening the entire legal market.

Green Flower shares the patient perspective as well as that of the small farmer, both of which groups could be devastated by mandatory distribution. The company suggests that California residents voice their concerns

Express your thoughts on our Linkedin group, Cannabis Investors & Entrepreneurs.

Read Green Flower Media’s “New regulation could triple the price of cannabis in California unless we fix it now”:

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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