As adult-use cannabis dispensaries continue to open across Connecticut, other types of cannabis businesses have been slow to begin operations.
As of Nov. 1, 55 cannabis companies had licenses pending, according to the state’s online licensing database, with 40 of those businesses having received their provisional license, which gives entrepreneurs more than a year to get operations up and running.
But just 10 companies — seven dispensaries, two growers and a delivery service — have fully active licenses, and are either operational or about to come online. Experts say there’s potential for some prospective business owners stuck in the licensing pipeline to abandon their plans.
In addition to a rigorous regulatory process, cannabis startups face a host of challenges, including a lack of capital and real estate options, as well as general tough economic conditions, experts said. “I think that’s certainly going to happen, unfortunately,” said Drew Richards, a CPA at accounting and consulting firm Marcum, referring to the potential for cannabis businesses to not move forward with their licenses. “In a normal business in a free capital market, you’re going to see businesses close unfortunately, or get 50% of the way there and say ‘nope, not for us.’”
Read the entire article at Hartford Business