A few months after Arizona voters approved a measure to legalize marijuana for recreational use in November, the industry is gearing up. Arizona’s recreational marijuana shops are projected to spend more than $6 million on capital expenditures this year. Have you ever visited a Scottsdale Dispensary? Dispensaries in Scottsdale and all across Arizona typically offer really great new customer deals!
With the passage of Proposition 207, Arizona is expected to see a boom in new dispensaries, grow facilities, and cannabis products. Proposition 207, which allows adults 21 and older to buy marijuana for recreational use, was approved by a margin of about 50.3 percent to 49.7 percent statewide.
Proposition 207 allows adults of 21 years of age and older to possess up to an ounce of marijuana for personal use. In addition, the state would license, regulate, and tax businesses to sell marijuana and also make it illegal to consume it in public or drive under the influence.
Proposition 207 would also make it legal for adults to grow and distribute marijuana in limited amounts for personal use, but only in an area secured from public view. Adults could legally possess up to six plants and up to 12 seedlings. The law, however, prohibits using marijuana on public school grounds or on the grounds of public facilities such as libraries, parks, or museums.
The suggested does not change existing laws prohibiting driving under the influence of marijuana or driving while impaired by any drug. It also does not affect workplace policies that prohibit employees from being under the influence of drugs or alcohol while at work.
The new law also means consumers will be allowed to purchase products from licensed dispensaries instead of having to grow their own plants. According to a spokesperson from the Arizona Department of Health Services, more than 200 people have applied for business licenses with the state since January 1. If you’re looking for a nearby dispensary check out our main page!
Those who hold a valid medical marijuana license and want to sell under the recreational program can get a new license without paying fees or applying for approval from the state. However, those who want to open a new dispensary must apply for approval from ADHS and pay fees ranging from $5,000 to $50,000 depending on how many plants would be grown at the facility.
Harvest is just one of many marijuana companies in the state poised to hire more workers to cater for this expansion.” It is a challenge to find the right talent,” said White, whose company operates medical marijuana dispensaries in Arizona, Illinois, and Nevada. “But I think everyone wants to be a part of this market because it’s going to expand quickly.”
White said he’s already started searching for employees for his Phoenix dispensary on Seventh Street south of Glendale Avenue. A Harvest job fair last month drew thousands of applicants. Also, he has been meeting with local colleges and universities about recruiting students who want part-time jobs at his dispensaries or elsewhere in the cannabis industry.
Canadian Companies Embrace the Deal
No one would deny the fact that marijuana has been a hot topic in the current year. A number of states have legalized the use of marijuana, while a few others have decriminalized it. Therefore, it is a surprise that Alaska is the 4th state to have legalized the sale, production, and consumption of marijuana. This begs the question if marijuana is legal in Alaska, then why not Canada?
Canadian companies have expressed interest in the new business deal that seems lucrative. For instance, Ayr Strategies has revealed an $81 deal that bids to acquire three oasis-branded in Glendale and Chandler. Ayr is a vertically integrated company that includes medical clinics, cultivation facilities, processing labs, and retail outlets for medical marijuana.
Tilray was one of the major beneficiaries of this deal as it has been able to get the first-mover advantage in space. The company had been working on its facilities in British Columbia for quite some time, and this deal helped the company’s stock price soar to levels that it had never seen before. In addition, this was a new opportunity for the company to get ahead of its competitors, who would need to wait a few more months to be able to start their business operations.
Another similar instance is the deal between Canada’s largest licensed cannabis producer and the Green Organic Dutchman Holdings Ltd. Canadian-based Canopy Growth Corporation has acquired all five of Green Organic Dutchman’s Canadian production facilities for $233 million in cash and stock.
It is still too early to determine whether or not these companies will be successful, but there is no doubt that they are excellent opportunities for investors.
Copperstate Acquires Shops from Level Up
Given the revenue potential of legalized marijuana, it isn’t surprising that several companies are getting in on the action by applying for licenses to grow and sell cannabis in many states across the country.
Since the proposition was passed, several companies have started to embrace the cannabis business and marijuana advertising. It will be interesting to see how many of these companies become leaders in this industry with time.
Copperstate Farms, which operates Sol Flower in Sun City and Tempe, announced buying the dispensaries in a deal that is expected to close on Friday. Level Up has a total of six dispensaries, including two in Las Vegas. The company also owns a cultivation facility in Las Vegas and a production facility in Henderson.
Sol Flower was founded by Phoenix-based Copperstate Farms and operated two dispensaries in Phoenix and Tempe. In addition, the company has other marijuana licenses for facilities spread across Arizona, Nevada, and California.
The acquisition was the second for Copperstate Farms this year. In February, the company acquired a group of Arizona medical marijuana dispensaries called the Mint Dispensaries. Copperstate Farms will continue to operate two of those stores in Guadalupe and Mesa.
Retailers Rely on Legislation to Keep Their Sales Afloat
To sell adult retail cannabis products in Arizona, dispensaries must apply for licenses from the Department of Health Services. The department must set up the licensing system and rules and regulations governing everything from security to labeling.
After that, businesses can apply for licenses, but many details still need to be worked out before anyone can apply for a license, including how much the application fee will cost and how many licenses will be issued initially.
However, current medical-marijuana dispensary operators say they expect multiple businesses applying for retail licenses in most counties as long as the atmosphere is fair and transparent during the application process.
Nonetheless, a spokesman for the Arizona Department of Health Services, which oversees medical marijuana in Arizona, said it’s too early to discuss regulation until after the election.
The state has conversely taken a proactive approach to implement the medical marijuana law. It is working toward establishing regulations for dispensaries, growers, and those who want to get into the business, including rules regarding licensing and fees.
What Will Be the Fate of Medical Patients?
Medical marijuana patients are worried that the state’s decision to allow recreational use of the drug will mean they will lose access to the drug they depend on. The state’s medical-marijuana law is supposed to protect patients from being shut out in favor of a new recreational industry.
Dispensary officials said that there’s still plenty of room for medical marijuana patients, and the expansion of the marijuana business should not displace the nearly 300,000 existing medical-marijuana patients in Arizona.
Dispensary owners say they expect most of the new customers will be people with chronic pain that could be treated with marijuana instead of prescription narcotics. Many will also be older patients who may have avoided cannabis because the drug was illegal for so long or didn’t think it would help their symptoms.
Medical-marijuana patients worry that if recreational users dominate the market, prices will go up, and cardholders will be cut off from their legal supply of cannabis. More than 2 million people are expected to qualify for medical marijuana ID cards when Arizona implements a new law allowing cannabis use to treat post-traumatic stress disorder and chronic pain.