Missouri's cannabis industry is undergoing a significant transformation as dozens of operators cut ties with LeafLink, one of the nation's largest wholesale cannabis platforms. The shift comes in response to sudden and dramatic pricing changes that have left many licensees re-evaluating the value of the services they use to manage supply chains, sales, and wholesale distribution.
Roughly one month ago, cannabis cultivators and manufacturers were notified of massive increases in service fees, with some citing jumps of 300% to as much as 2,000%, from LeafLink.
"We were looking at a 15x to 20x, a 1,500%-2,000% increase, because it depends on the size of your revenues," said Howie Keum, CEO and Co-Founder of Local Cannabis/Calyx Peak. "You can't just quadruple or 10x or 20x someone's monthly bill and expect them to say, 'Sure, thanks for the privilege.' There was no outreach, no transition plan, just, a here you go, take it or leave it."
"It felt like it was a cash grab, and people took it personally," Keum said. "It wasn't just about the money, it was about the way they went about it."
Read more at Greenway Magazine