Colorado’s prohibition on publicly traded cannabis companies and limits on out-of-state investment were officially lifted at the start of this month, heralding a new era of growth in the state’s industry — and potentially one of further corporate consolidation.
The changes went into effect on Nov. 1, under emergency rules issued by the Colorado Department of Revenue’s Marijuana Enforcement Division in August. These were drawn up to implement House Bill 19-1090, “Concerning Measures to Allow Greater Investment Flexibility in Marijuana Businesses,” which was signed into law by Gov. Jared Polis on May 29.
This was the second shot at overturning the restrictions on out-of-state investment in the Colorado cannabis industry. A similar measure was among a handful of bills to loosen up Colorado’s cannabis sector that were vetoed last June by outgoing Gov. John Hickenlooper — like Polis a Democrat, but a far more conservative one. Polis’s victory that same month was hailed by the cannabis community as a favorable sign.
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