Chalice Brands Ltd CHALF

RE:A glimpse at the Oregon market 2 months into Legalization

[PotStocker]

MagicBeans wrote: There are some growing issues between industry and governments handling of the infrastructure to sell REC and MMJ.

On 4 January, the Oregon Liquor Control Commission (OLCC) will take over all sales of recreational marijuana and add a 25% sales tax – in a state that has no sales tax. In autumn of next year, OLCC-licensed retail stores will open.

At that time, existing dispensaries can choose between obtaining an OLCC license to sell recreational marijuana or remaining a medical-only dispensary. Businesses are not permitted to hold both licenses.

And also

If the state does not allow the medical and recreational markets to merge, Donald Morse believes that “95% of dispensaries in Oregon will go opting for recreational sales. There won’t be enough to service the needs of the patients, and those patients will be forced into retail stores.”

It takes times for states to find the right balance with infrastructure and tax regimes or the risk is there that consumers simply continue to buy illegally.

“I think it’s entirely possible that the medical system as we know it today is pretty much obsolete within a year,” said Morse. “Legally it will still be there, but market forces will create a situation where people will say, why bother with this?”

Legalization is out of the box and unlikely to return to prohibition in my opinion but the growth and health of the market will not always be straight up.

https://www.theguardian.com/us-news/2015/nov/21/oregon-cannabis-legalization-medical-marijuana-dying-market

This transition would not impact the growers and producers. The retailer and distributors will have to adapt into the new system.