Cannabis Businesses in Massachusetts Suffering from High Rate of License Surrenders
In a surprising trend, cannabis businesses in Massachusetts are surrendering their licenses at an alarming rate. According to recent data, four retail licenses have been surrendered, not renewed, or revoked since last September, compared to just five licenses surrendered over the previous five years. Additionally, 26 non-retail licenses, including manufacturers and growers, have been surrendered, revoked, or not renewed in the past year, up from 11 over the previous five years.
One business, Suncrafted Cannabis, surrendered its recreational cultivator license in Middleborough last year after realizing it didn’t need it. The company’s owners cited economic and regulatory challenges as reasons for the decision.
Industry experts point to a combination of factors contributing to the high rate of license surrenders, including economic pressures, regulatory hurdles, and changes in the market. The trend is likely to continue unless the industry can adapt to the challenges it is facing.
The data highlights the challenges faced by the legal cannabis industry in Massachusetts, which has been growing rapidly since its legalization in 2016. The industry is expected to continue to evolve as it faces new challenges and opportunities.
