Just days after news broke that Dixie Brands is leaving the Arizona medical marijuana market, another prominent edibles company said it’s doing the same – though for different reasons.
California-based Bhang Chocolate is losing its local licensee, Harvest of Arizona, meaning it won’t have anyone on the ground in the state to produce and distribute its products, the Phoenix New Times reported.
Bhang’s inventory has already run out in several dispensaries and probably won’t last long in the remaining shops, according to the New Times.
But a company spokesman told the newspaper it hopes to find a replacement licensee by the end of the year and return to the Arizona MMJ market.
Harvest said it decided to use its MMJ concentrates – which had been employed to produce the Bhang line – for its own vape pen cartridges.
Harvest CEO Steve White said his shop will restock Bhang when production resumes in Arizona and the line is again available for sale.
The Arizona licensee hurdle also isn’t the only problem Bhang is dealing with, New Times reported.
The edibles company also still owes $1.9 million to investment firm Mentor Capital stemming from a 2014 deal that fell through and then wound up before an arbitration panel.
Because Bhang hasn’t settled the debt – which dates back over a year – Mentor added another $154,000 in interest, New Times reported.
Bhang, like Dixie, has a business presence in multiple states, as well as Washington DC and the Netherlands. Dixie is leaving Arizona on Sept. 1 to reevaluate its strategy for the market.