California has suspended nearly 400 marijuana business permits, temporarily paralyzing roughly 5% of the state’s legal cannabis supply chain ranging from retailers to distributors.

Those companies must cease all sales transactions until their licenses are reinstated to “active” status, leading one prominent trade group to criticize the state for temporarily reducing the number of legal shops.

The Bureau of Cannabis Control (BCC) on Nov. 1 issued notices to 394 retailers, delivery services, distributors and microbusinesses that they won’t be legally able to conduct business until they’ve undergone mandatory track-and-trace system training and credentialing, a spokesman for the agency confirmed.

As of Wednesday, the suspended licenses had dipped to 385 and included:

  • 63 retailers
  • 61 delivery services
  • 47 microbusinesses
  • 185 distributors
  • 29 distributors that are transport-only

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Nearly 400 California marijuana business licenses suspended, injecting fresh uncertainty into state’s cannabis industry