Will Provisional Licenses Save California's Cannabis Industry?

Results from a gap in California’s cultivation licensing between those growers holding active licenses, inactive licenses, or temporary licenses soon to expire mean that:
Prices will be higher — With the California market already constrained, the licensing gap will drive up prices; the combination of higher prices and higher taxes will push legal consumers out of the market.
Demand will increase in the illicit market — By restricting licenses, suppliers will be driven back into the shadows where there is ample demand nationally for California product.
Tax revenues will decrease — With lower demand, lower output, and lower sales, tax revenues will continue to fall short of estimates.
The counties hardest hit by license expirations will be in Northern California (e.g., Humboldt, Mendocino, Monterey, and Santa Barbara), which will extend a significant economic impact beyond simply output, sales, and harvest taxes. Lower employment and higher costs for social services will ensue.

Market News and Data brought to you by Benzinga APIs

The Top Cannabis Event In New Jersey

Join the Benzinga Cannabis Market Spotlight in New Jersey on June 17th! Grow your business, raise money and capitalize on the booming NJ recreational market. Don’t miss this must-attend event in New Brunswick. Secure your tickets now. Very few spots are left. Use the code "JAVIER20" for 20% off!

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Will Provisional Licenses Save California's Cannabis Industry?

Comments

The Top Cannabis Event In New Jersey