'We're Happy Governor Newsom Banned Hemp': Why One Cannabis CEO Supports The Move

As the CEO of Gold Flora, a leading cannabis company in California, Laurie Holcomb is confident that the state remains at the forefront of the industry despite numerous challenges. At the Benzinga Cannabis Capital Conference, Holcomb discussed California's position as a revenue leader and the evolving regulatory landscape.

Holcomb emphasized that, despite criticism, California continues to lead the nation in cannabis revenue. "We do $5 billion a year in revenue," she noted, underscoring the state's influence. "I would just hope that people don't write off California. We are a big state, and investors and people should look to us as a leader in the industry."

California's Cannabis Market Remains Strong

While California often faces a bad reputation due to its heavy regulations and taxes, Holcomb believes these obstacles haven't diminished its role as a leader in the U.S. cannabis industry. She pointed out that the state still has one of the largest legal cannabis markets, which plays a crucial role in shaping national trends.

Gold Flora, Holcomb's vertically integrated company, continues to see growth. "We cultivate, manufacture, distribute, and have 17 retail stores," she said. "Our brand is one of the fastest-growing in California." This success, she argues, shows that California's cannabis companies can thrive despite the regulatory burdens.

Support for Governor Newsom's Hemp Ban

Holcomb also shared her thoughts on California Governor Gavin Newsom's recent ban on hemp-derived cannabinoid products. The decision has stirred debate in the industry, but Holcomb firmly supports the ban. "We're happy that Governor Newsom banned hemp," she stated. The reason, she explained, was that these products were being sold in smoke shops, competing with legal cannabis products but without the same regulatory burdens.

"We pay extraordinary taxes at both the local and state levels, so it's unfair business competition," she said, highlighting the difficulty of operating within such a competitive landscape.

Hope for Federal Rescheduling

Looking beyond California, Holcomb also expressed optimism about the potential rescheduling of cannabis from a Schedule I to a Schedule III substance later this year. "There's over 75% approval that people want this to happen," she said, reflecting on the bipartisan support the issue has gained. "Hopefully, we're not disappointed for the fourth year in a row."

With federal changes potentially on the horizon and California continuing to generate massive revenue, Holcomb remains confident in the state's influence and the future of the cannabis industry.

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Photo by Wendy Davis.