Keeping Up with Cannabis Demand: It's All About the Licensing

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

As Cannabis legalization sweeps the United States, companies in the industry are quickly realizing they have one major problem; they can't keep up with all the demand. A large cause of this supply chain issue is the licensing needed to operate within every step along the way.

Without the proper licensing, the grower cannot extract their cannabis into concentrated oils to go into vape cartridges, the extractor and vape filler cannot distribute their product to dispensaries, and dispensaries cannot do anything except purchase cannabis products directly from one of the licensed distributors.

The only way to be able to grow without complete reliance on 3rd party suppliers is to obtain every single piece of licensing across the entire supply chain. While this is an expensive, difficult, and time-consuming process, it's exactly what is required to survive and thrive for the long term in cannabis, and it's exactly what Vertical Companies has spent the last 5 years doing.

Vertical Companies was founded with the belief and understanding that to be successful in Cannabis for the long-term, you need to control your supply chain. No matter how popular your stores, brands, or products get, if you don't have the supply chain set up to grow with the demand, you're doomed from the start.

If you would like to receive information on investing with Vertical Companies please click here.

In 2019, Vertical Companies completed their $63M capital raise and this allowed them to complete construction and start growing out of their state-of-the-art 100% indoor cultivation and manufacturing facility in Needles, California. Spread across 7 acres with 22 additional acres zoned and approved for cannabis use, Vertical's Needles facility is one of the largest indoor cannabis facilities in California and is churning out a harvest of hundreds of pounds every single week.

And since the facility is 100% indoors, the cannabis grown is all of the highest possible quality. By growing cannabis entirely indoors in a controlled environment, Vertical can fine-tune every aspect of the growing process to be exactly what every individual plant needs. Hundreds of high-tech sensors monitoring all of the 34 growing rooms regulate the nutrients, water, and lighting schedules of the plants 24/7 to make sure they're grown to their absolute fullest potential. An expensive upfront investment, but something that will allow the company to continue scaling without any bottlenecks coming from the heart of any cannabis business, the grow.

As Vertical continues to attract even more demand for their cannabis than they already have, the smart and strategic planning when the company was started will prove to be one of the major separators between them and the competitors struggling to keep up.

If you would like to receive information on investing with Vertical Companies please click here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.