Let’s look at the other states that chose the limited, “privileged” license model.
Illinois, Florida, New York, Ohio, New Jersey, Nevada and several other states have followed this path.
The initial application process defines the market and the players.
The result has been “Big Weed” and the birth of the multistate operator, or MSO.
Since getting and maintaining a license is a separate skill from successfully running a cannabis company, many of the operators in these markets have figured out only part of the marijuana business.
Once they’ve obtained their licenses, they have difficulty delivering high-quality product to the consumers at a reasonable price.
The most successful MSOs cannot survive on $20 eighths and $150 ounces (the current Colorado retail pricing for high-grade marijuana).
Plug those numbers into any MSO’s 10-K annual report and tell me how long they last at their current burn rate.