Almost 150 marijuana companies in California warned on Friday that they could suffer crippling financial losses if the state does not renew a July 1 deadline and sets stringent standards for pot trials and packaging ,
In a letter According to Jerry Brown, the United Cannabis Business Association, the changes would further unsettle the burgeoning legal market, which started on January 1, and force companies to close their doors.
The trade group representing cannabis companies said there were too few laboratories to run the tests, and retailers would have to destroy huge quantities of unsold cannabis that did not meet the new standards.
Association President Jerred Kiloh estimates that companies could suffer losses of nearly $ 400 million if these unsold deliveries are destroyed. 1
In a statement t, the State Office for Cannabis Control gave no indication that it would consider postponing the deadline.
"We issued our emergency regulations as early as November, and at that time we were pretty clear that there was six monthly transitional periods for retailers to consume their existing supply." We felt that there was plenty of time to do so to decimate existing stocks and to adapt to the new Californian rules, "Agency spokesman Alex Traverso said in an email.
Regulations prescribed by law six months after extensive legalization of marijuana This pot sold after Saturday meets strict quality standards. With the approaching date, retailers have sold unchecked inventory at bargain prices.
The introduction of the country's largest legal pot market was bumpy at best. The black market is still thriving and the industry complains about taxes, which can reach 50 percent in some areas. Others fear that a shortage of both adult and medical marijuana retailers could bring the supply chain to a standstill. 19659003] California is subject to temporary regulations, while the largest city, Los Angeles, is issuing licenses only slowly.
The change in the rules was part of the state's decision to allow the industry to launch at the beginning of the year, and stores were given six months to burn cannabis and edible food without stringent testing requirements.
Any marijuana harvested this year or sold on July 1 must meet or be destroyed in quality and safety standards
The pictured letter is an emerging industry struggling to gain a foothold.
The group said that the 30 licensed laboratories testing the pot would not be able to cope with demand, leading to a shortage of shelves, a system that was designed to track plants from seed to sale And the packaging companies are unwilling to comply with the new rules.
"Customers and patients will become involved in illegal market retailers and delivery services that still have a wealth of products for sale. Licensed retailers will be forced to close Letter wrote:
The companies and interest groups that signed the letter represent a fraction of the state legal market. For example, more than 3,300 cultivation licenses have been granted, and there are more than 400 licensed retailers.
History of Associated Press Author Michael R. Blood