One of Colorado's largest marijuana companies will soon stop growing its own cannabis. Green Dragon will close its Denver cultivation plant at the end of the month, according to Cory Azzalino, CEO of Green Dragon's California-based parent company, Eaze.
"It's not economical despite our teams best efforts to improve yields," he said of running the 92,000 square-foot facility. "At the end of the day, the facility costs substantially more to run than to buy product in the market. You'd either have to double yield or have the market price double for it to make sense."
A down Colorado market is a major driver in the decision, Azzalino said.
According to the Colorado Department of Revenue, the average price for a pound of bud is $655, down from a recent high of about $1,300 in October 2021. State tax revenue from cannabis sales has dropped each of the past four years, and is tracking to do the same in 2025.
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