Running a legal marijuana dispensary is just as profitable as owning a Starbucks according to an analysis of a recent BDS Analytics study by Arcview Market Research.
Arcview found that the average dispensary takes in approximately 12 percent profit after taxes. This is about the same average profit margin for a Starbucks.
“This report shows that retail cannabis could be as big as the iPhone. It’s clearer than ever that there is a pot of gold at the end of the rainbow for those investors and operators who are willing to deal with the uncertainties and difficulties of current regulations,” said Arcview CEO, Troy Dayton according to the Press Herald.
“Cannabis stores are unlike anything the retail world has seen since big-box stores wiped out much of the specialty store business in the 1990s,” said Arcview Market Research Editor in Chief, Tom Adams. “And because of federal prohibition, publicly traded retail companies are just going to have to stand aside while entrepreneurs pursue this unique retail opportunity.”
The report also took into consideration that dispensaries are unable to take advantage of most business tax credits since marijuana is still a federally banned substance. Dispensaries are forced to make up for the lost money by including it in the retail price of products. It seems possible that marijuana dispensaries could become even more profitable if federal law changes.
LIMA (Reuters) – Peru’s conservative Congress passed a bill to legalize medical marijuana late on Thursday with a 68-5 vote in favor of allowing cannabis oil to be produced, imported and commercialized.
President Pedro Pablo Kuczynski had proposed the measure after police cracked down on a group of mothers making cannabis oil in a makeshift laboratory to treat their epileptic children.
Regulations for producing and commercializing cannabis oil will be written in 60 days, ruling party lawmaker Alberto Belaunde said.
“Thousands of patients and their family members will have hope and a better quality of life,” said Belaunde.
Peru’s neighbors Chile and Colombia have already legalized marijuana for medical purposes. Uruguay has fully legalized growing and selling marijuana for any use.
Austin- Texas has issued its first medical marijuana license, and two more companies are expected to be awarded licenses soon.
Cansortium Texas, which is a part of Florida-based Cansortium Holdings, received a license Friday, the Austin American-Statesman reported . The company will be allowed to grow, process and sell medical marijuana for patients with a rare form of epilepsy.
Cansortium Holdings Chief Executive Officer Jose Hidalgo said he’s humbled the company received the license. The company has medical cannabis licenses in Florida, Pennsylvania and Puerto Rico. The state Department of Public Safety is reviewing applications from Compassionate Cultivation and Surterra Texas.
The companies were selected from more than 40 applicants in May and have undergone a series of facility inspections. They face strict state regulations that restrict their customer base and how they formulate the products. Licenses are being issued under the Texas Compassionate Use Act, which Gov. Greg Abbott signed into law in 2015. The act legalized the production and sale of cannabidoil, an oil that doesn’t produce a high.
The law only allows patients with intractable epilepsy to use the oil. Patients must have a doctor’s prescription and have already tried two conventional drug treatments that weren’t effective.
“It is safe to say that it is a challenging market,” said Morris Denton, chief executive of Compassionate Cultivation. Denton said he hopes to eventually persuade state lawmakers to make medical marijuana available to a wider group of people. The three companies will pay a nearly $490,000 fee once they’re approved. They’ll have to renew the license in two years for nearly $320,000. The fees cover the cost of regulating the industry, state officials said. Industry experts believe relaxing the restrictions and making medical marijuana more widely available could allow the Texas market to rival California’s estimated $2.8 billion cannabis market.
There are currently eight states in America that have legalized recreational marijuana, or as we like to call it: ADULT USE. Most experts believe that number is set to grow quickly in the next few years. But which states are most likely to hop aboard the cannabis train next?
According to Marijuana Business Daily, three state legislatures are likely to legalize adult use in 2018: New Jersey, Vermont and Rhode Island.
New Jersey could actually be the first to do so. Republican Governor Chris Christie leaves office in January, and most signs point to Democrat Phil Murphy winning the gubernatorial election in November. Murphy is in favor of legalizing marijuana, and there’s already a bill before the legislature to do so. Perhaps they’re waiting until they know there’s someone in the governor’s office to sign the bill before they pass it.
Vermont and Rhode Island are also expected to legalize marijuana, although they’re often considered likely to do so. The states have fairly liberal legislatures that are often at the forefront of passing progressive legislation, and yet they haven’t done so with recreational marijuana. Still, both states are very likely contenders to do so.
Connecticut, Delaware and Maryland are also states that they point out could pass recreational marijuana in the near future, but 2018 may be optimistic.
And when it comes to medical marijuana, cannabis advocates are beginning to put on the pressure in Louisiana and Iowa in 2018. While many other red states continue to push anti-marijuana agendas, those two states have significant support for medicinal cannabis and could see breakthroughs next year.
A Republican lawmaker plans to introduce a bill during the upcoming legislative session that would legalize medical marijuana. “I can’t comprehend how we can deny people something that provides them with relief that’s not addictive and is not killing anyone when we know for a fact that prescription opioids are killing people,” he said. Lucas has been soliciting feedback on the topic on Facebook and said he has discussed the topic with doctors, veterans organizations and advocacy groups such as the National Organization for the Reform of Marijuana Laws.
“I still have a lot to learn on this,” he said. “Right now, I’m drinking from a fire hose, reaching out to credible groups and individuals.” Lucas would be the first Republican lawmaker to formally propose such legislation in at least five years. Democrats routinely file such bills, but they have consistently failed to receive even a hearing in the GOP-dominated General Assembly.Lucas, a self-described libertarian who is best known for his efforts to roll back gun restrictions, said he recognizes medical marijuana is a long shot in Indiana. Opposition remains strong among his fellow Republicans. Senate President Pro Tempore David Long, R-Fort Wayne, and House Speaker Brian Bosma, R-Indianapolis, for example, have traditionally opposed any efforts to legalize marijuana, even for medical purposes.
In the face of such opposition, Lucas said he plans to pitch medical marijuana as a safer pain management tool that could help combat the scourge of overdose deaths from addictive prescription pain killers that have rocked the state in recent years.
“The gateway drug thing, we have to get past that,” Lucas said. “I would point out we have a gateway drug that is punching us in the face right now and it is prescription opioids.”
Sen. Karen Tallian, D-Portage, who has pushed for years to decriminalize marijuana, welcomed Lucas’s interest in the topic.
“Sometimes it just has to be somebody else’s idea,” she said. “I’ve always said the left meets the right if you keep going far enough.”
Huntington Beach zoning amendment that would prohibit the sale and distribution of non-medical marijuana by businesses will be considered by the City Council on Monday. The amendment also would regulate the cultivation of recreational marijuana. The Planning Commission voted 6-1 in late July to recommend approval, with Commissioner Dan Kalmick dissenting on grounds that he believes the city is devoting a large amount of resources to regulating a “boogeyman.” According to the Huntington Beach Police Department, non-medical marijuana businesses and deliveries could have negative effects such as an increase in robberies, thefts and burglaries, a city staff report states. The department says cities that have non-medical marijuana businesses have seen increases in arrests related to driving under the influence, according to the report. Proposition 64, which voters statewide passed in November, allows people 21 and older to use and cultivate non-medical marijuana, with stipulations granting local governments the ability to ban recreational marijuana businesses and regulate cultivation. Under the Huntington Beach amendment, outdoor cultivation of recreational marijuana would be illegal. Indoor cultivation would be restricted to private residences in an enclosed area, according to city documents.