MRR reports…
Virginia’s limited commercial medical cannabis program will be met with modest expectations when it launches, possibly within weeks.
But proponents of the new MMJ market have lofty hopes for high growth and strong business opportunities – thanks to the possible rollout of flower sales in the next year or two.
For now, products are limited to cannabis oils, edibles such as lozenges and lollipops as well as vape cartridges with single doses capped at 10 milligrams of THC.
Despite the market restrictions and projections it will reach only $50 million in sales by 2024, Virginia is seen as a gem by licensees because:
- Only five vertically integrated licenses were issued. Each operator has been granted a virtual monopoly in one of five “health service” areas. One license is vacant after MedMen Enterprises was recently forced to surrender its permit.
- Legislation passed this year and signed into law allows those operators to open an additional five satellite dispensaries, called pharmacies, for a total of six in their service area.
- Flower could be added as soon as next year under a Democratic-controlled Legislature and Democratic governor.
- The licensees could get fast-tracked into a recreational marijuana program in the not-so-distant future. A legislative group has been convened to study adult-use legalization, but it could be a couple of years before lawmakers actually seriously consider the issue.
