Developing player in cannabis market to invest roughly $10 million in Iowa

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An emerging major player in the marijuana industry plans to build a large facility in what might seem an unlikely place: Iowa.

The state’s medical marijuana market allows the sale of only low-THC cannabis, meaning products cannot exceed 3% THC.

But according to the Des Moines Register, New York-based Acreage Holdings is looking to spend roughly $10 million on an indoor cultivation facility in Cedar Rapids through its subsidiary Iowa Relief.

Acreage’s advisory board includes former U.S. House Speaker John Boehner.

Here’s what you need to know:

  • The state’s health department awarded a cannabis manufacturing license last week to Iowa Relief.
  • Acreage has marijuana operations in 12 other states.
  • So far, Iowa has awarded licenses for five cannabis retail stores and a cultivation and processor license to MedPharm Iowa.
  • Some businesses that have been granted licenses are calling on state regulators to remove the 3% THC limit and allow for a wider variety of products, according to the Register.
  • Product is expected to be available in December.
  • Only 415 patients have registered in the state for the MMJ program to date.