Friday, June 28, 2013

marijuana dispensaries becoming exclusive domain of the 1%


HuffPo | Once a business proposition that required little more than a few thousand dollars and some gardening equipment, selling medical marijuana is quickly becoming a dream fit only for deep-pocketed entrepreneurs.

Regulations in states that only recently legalized medical marijuana are mandating that would-be dispensary operators set aside large amounts of cash before even applying for a license, tipping the scales in favor of businesspeople with money to burn. Drawn-out licensing processes being devised in those states mean permits to run dispensaries will likely only go to those able to afford a cadre of consultants and lawyers.
Five years ago, Ean Seeb helped open Colorado dispensary Denver Relief with “four thousand dollars and half a pound of cannabis.”

“I don’t think that would ever happen again,” said Seeb, who now works as a dispensary consultant. “Somebody who just has a good idea but little capital would find it difficult to impossible to go into the business today.”

Seeb said he is counseling clients in Massachusetts, where only 35 dispensary licenses will be granted starting later this year, to set aside at least $2 million before even considering going into the medical marijuana industry. Not only are state fees related to the permitting process likely to total over $100,000 for many dispensaries, but the merit-based process for obtaining a license is also expected to privilege those who can demonstrate they have excess cash to secure an abundant supply of cannabis. Fist tap Arnach.

1 comments:

arnach said...

... and doing it with the financial backing of the .01%.