When the CEO of a California marijuana retail chain sued the state in September over so-called “burner distribution licenses,” he focused a spotlight on an issue that many in the state’s cannabis industry are loathe to acknowledge:
Many of the state’s licensed marijuana businesses are bending or breaking the rules – and have been since California’s legal adult-use market launched in 2018 – because there’s so little profit to be had by operating lawfully.
That’s an allegation leveled by numerous industry officials. Such activity has been something of an open secret for years, but the “burner distro” lawsuit has given insiders cover to discuss more openly.
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