Medical Marijuana Shop Closes Down In South Dakota, What Went Wrong?

The first medical marijuana shop in South Dakota is closing its doors. Unity Rd. – the cannabis retail franchise from Item 9 Labs Corp. – shared the news in a social media post.

"With a heavy heart, we share the news that Unity Rd. and The Hartford Connection will be closing its doors on December 7th," the Nov.7 statement said. "The journey has been challenging, as the cannabis industry in South Dakota has faced significant obstacles due to the state's inability to establish an effective medical cannabis program that truly serves its residents."

The store’s closing follows South Dakota’s rejection of legal cannabis this past Tuesday.

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The store, located in the Sioux Falls suburb of Hartford, opened in July 2022 in partnership with local entrepreneurs B.J. Olson and Adam Jorgensen, following cannabis’s legalization in July 2021. It then entered receivership in July 2023 and retained Sharp Capital Advisors to help sell its business later that year.

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The state's initial positive activity related to cannabis, was followed by a change in the price of the annual certificate for medical marijuana businesses earlier this year from $5,310 to $9,000. The change came under Senate Bill 43 which Governor Kristi Noem (R) signed in March, together with two other medical marijuana bills.

The defeated legalization initiative would have allowed adults over 21 to possess limited amounts of cannabis and cultivate plants at home, but failed to receive the necessary support from voters.

This was the third attempt at legalizing cannabis in the state, following failed attempts in 2020, when an amendment was passed by 54% of voters but later overturned by the state Supreme Court. This happened in 2022 as well.

Read Now: Majority Of South Dakotans Are Against Recreational Cannabis Legalization, New Poll Finds

Unity Road Company photo