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Adult-use marijuana companies struggle to stay afloat amid overproduction, falling prices

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As mainstream businesses cope with surging inflation and the threat of a recession, many adult-use marijuana companies – growers, retailers and ancillary businesses alike – are struggling with their own host of problems.

Falling prices and a product glut in more established state marijuana markets are forcing companies out of business, triggering layoffs and setting off an industrywide scramble to stay afloat.

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Colorado, Oregon and Washington state are among the more mature markets where wholesale cannabis prices have tumbled, because growers produced far more flower than retailers could absorb.

The falling prices have put added strain on cannabis growers and retailers.

Ancillary businesses also are struggling, with tech companies Akerna of Colorado and Dutchie of Oregon as well as California-based delivery operator Eaze recently shedding employees.

Compounding the problems of cannabis companies: Marijuana products are often taxed at a far higher rate than mainstream goods such as corn,

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Marijuana Business Daily

Cannabis tech company Akerna moves to raise $10 million as stock falls

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Business leaders need reliable industry data and in-depth analysis to make smart investments and informed decisions in these uncertain economic times.

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  • 200+ pages and 50 charts with key data points
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    Stay ahead of the curve and avoid costly missteps in the rapidly evolving cannabis industry.

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    Minnesota THC expansion leads raft of new laws on hemp extracts, intoxicants

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    Learn the fundamentals for getting started in cannabis retail in this comprehensive guide curated by the editors at MJBizDaily with help from industry experts.

    Inside the MJBizDaily Retail Buyers Guide: Learn best practices for designing a cannabis dispensary. Select display infrastructure that supports industry compliance. Choose the right point-of-sale system for your operation. How to incorporate e-commerce and home delivery. And more!

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    Green Thumb nets $55 million from IIP in amended marijuana lease

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    Marijuana real estate company Innovative Industrial Properties (IIP) amended a lease on a cannabis cultivation and processing property in Danville, Pennsylvania, operated by Green Thumb Industries, yielding a $55 million reimbursement for GTI’s development of a new building.

    San Diego-based IIP bought the property from Green Thumb for $20.3 million in 2019, then leased it back to the Chicago-headquartered multistate operator while funding improvements such as new growing, production and processing space as well as area for utility infrastructure.

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    The $55 million in new funding under the amended lease “was utilized as reimbursement to Green Thumb for costs incurred in the ground-up development of an additional approximately 152,000-square-foot indoor cultivation and processing facility,” IIP noted in a Thursday news release.

    “The new facility contains flower rooms, veg rooms, mother rooms, dry rooms, processing, storage, office and supporting spaces,” IIP noted.

    IIP also owns Green Thumb cannabis facilities

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