The days of fat margins and easy money in the cannabis industry are a thing of the past. That means mergers will be down and some companies will simply run out of money, unable to keep up with the changing market and regulations. With the passage of a bill through the Senate, Hawaii is one step closer to legalizing marijuana. This could be a promising sign for the industry, showing that new markets are opening up despite the difficulties.
As a response to these changes, some cannabis companies are looking to diversify their offerings. One company, Bloomfield, is already home to one cannabis shop – the RISE dispensary – and is looking to expand its range of products, including offerings for those who don't want to buy cannabis. The company is also investing in customer service, with a customer service desk before exiting out the rear of the building.
On the other hand, some companies are struggling to keep up with the changes. While inflation is causing the cost of many products to go up, marijuana prices at dispensaries have plummeted, and many operators are going out of business. The green out weed trend has made it difficult for companies to maintain their margins, as they are unable to pass on the costs to consumers.
As a result, some cannabis companies are turning to alternative sources of funding. Nasdaq-traded marijuana company Bright Green Corp. is again attracting investor attention, this time through the EB-5 Immigrant Investor Program to build out its “world-class” cannabis facility. This could be a way for the company to stay afloat in the face of declining profits.
Other companies are looking for other solutions in order to stay afloat. Companies are running out of money and are looking to stay afloat in order to stay competitive in the market. One cannabis company, for example, wound down sales in California, according to Green Market Report. This could be a sign of the changing times, with companies unwilling to risk their capital on a volatile market.
In addition to businesses, the effects of the green out weed trend is impacting the environment as well. The Telephone Gap Integrated Resource Project spells out a suite of measures to protect the environment in the area, including reducing logging and protecting species. The Green Mountain National Forest argues this logging will make the forest healthier, but environmental groups are concerned about the impact on species and air quality.
Consumers are also affected by the green out weed trend, with some products becoming more difficult to find. Rounding out the initial selection is the Stiiizy “Liiil” Disposable Vaporizer, which is a popular product in the cannabis industry. However, due to the changing market, some retailers are no longer carrying the product. Retailers carrying Stiiizy products in Illinois include Green Rose and The Kola House, as well as a few other locations.
The green out weed trend has had a major impact on the cannabis industry, with some companies struggling to stay afloat and some products becoming more difficult to find. While the passage of a bill in Hawaii is a sign of hope, the industry still faces a number of challenges. Companies will need to find innovative ways to stay competitive, while consumers need to stay informed about the changing market.
