From: Why 3 illicit marijuana operators decline to go legal in California
Illicit sales outpace legal transactions
Global Go Analytics estimates California’s illicit cannabis market generates $8 billion in annual sales, nearly double that of the legal market, which the MJBizFactbook pegs at $4.4 billion last year.
“California managed to become the only state that actually grew the illicit market by legalizing adult use,” said Tom Adams, chief executive and principal analyst of the Los Angeles research firm.
When state regulators launched California’s legal marketplace in January 2018, medical marijuana dispensaries had to gain both local and state recreational permits.
The vast majority – as many as 1,000 by industry estimates – simply closed, moved or chose to remain unlicensed, diminishing access for consumers and suppliers.
At the same time, dozens of cities and municipalities declined to license retailers and other cannabis businesses.
Adams estimates the policy overhaul shifted at least $500 million in cannabis sales from the legal market to the illicit sector.
Read on here: https://mjbizdaily.com/why-3-illicit-marijuana-operators-decline-to-go-legal-in-california/
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Global Go provides sophisticated consulting services to the global cannabis and hemp industry. In tandem with strategic allies around the world, Global Go serves clients throughout the world from offices in Austin, Bogota, Chicago, Cyprus, Denver, Johannesburg, London, Los Angeles, Mexico City, New York, Palm Springs, Phoenix, Quito, São Paulo, Silicon Valley, Toronto, and Zurich. Powered by a team of cannabis industry pioneers and world-class consultants, Global Go helps leading cannabis funds and companies assess and enter new markets; acquire assets; raise capital; launch new product lines; improve SOPs; comply with regulations; implement technology and security systems; find talent; diagnose and execute solutions to growth obstacles; and apply for cannabis licenses (with a 99% success rate on over 175 cannabis license applications across the United States). Learn more at https://globalgo.consulting.