Cannabis retailers in California are scrambling to unload product that won’t be compliant with state regulations starting July 1.
They were given six months to exhaust their supplies of products made before the new requirements, and the deadline to sell those products is June 30.
On July 1, retailers must destroy any that remain.
The crunch to comply with state regulations means there will be a “tremendous amount of waste, chaos and money lost” throughout the cannabis supply chain, Menaka Mahajan, a cannabis consultant in San Francisco, told Marijuana Business Daily.
Earlier this week, sources told MJBizDaily the regulations could be an “extinction event” for California’s cannabis businesses.
According to multiple reports, California dispensaries are deeply discounting or giving away noncompliant product. For example:
- Harborside in Oakland and San Jose is advertising on its website 40% off select flower and pre-rolls.
- Golden State Greens in San Diego is advertising on Weedmaps up to 75% off storewide.
- Firehaus in Los Angeles is advertising 50% off some products, according to the Associated Press.
- A Therapeutic Alternative in Sacramento is discounting 60% of its inventory, and remaining clearance items will be given to MMJ patients with state-issued ID cards for free on June 30, the Sacramento Bee reported.
John Atari, CEO of Source Cannabis Farms, a licensed cultivator in Los Angeles, told the AP “there’s going to be a big shortage of clean product come July 1.”