May 1, 2012

MMJ Crackdown Having Intended Effect as 3 More Colorado Cannabis Dispensaries Call it Quits

Colorado medical marijuana news, cannabis dispensary updates and MMJ industry developments

Colorado’s medical marijuana industry continues to contract, with three MMJ dispensaries in the college town of Boulder deciding to close up shop after receiving warning letters from the federal government. Several additional marijuana centers in the state could go a similar route as a May 7 deadline approaches.

The Boulder Daily Camera reports that all three dispensaries in the city that received letters several weeks ago have decided to close rather than relocate. Two have already shut down, and the other one is holding a fire sale to prepare to close.

The closures are devastating for those involved: employees lose their jobs, owners see all the money they invested in the business evaporate and patients lose options for obtaining medical marijuana. Companies and individuals that provide services and products to these dispensaries – from legal advice to marijuana storage containers – take a hit as well.

The three dispensaries in Boulder were among two dozen medical marijuana centers in Colorado that federal prosecutors targeted in the second round of an MMJ crackdown in the state.  The centers – all located within 1,000 feet of a school – were told to close or move by May 7.

The number of dispensaries in Colorado has dropped from more than 800 roughly 18 months ago to less than 700 today. At the same time, the number of registered patients has fallen by nearly 40% since last June, according to the latest official figures.

Strict new regulations on dispensaries that went into effect in July 2011 forced some centers out of business and scared some patients away. Other dispensary owners simply decided that the risks aren’t worth it, and a handful closed after the government’s first round of warning letters.


One Comment:

  1. I disagree with the title. I don’t believe the feds want mmj dispensaries to shut down. They want to make money. The feds find politically acceptable reasons (school proximity, taxes, suspected trafficking) to regulate mmj businesses. If the businesses continue to operate, the feds can seize assets and assess back taxes.

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

Professor Projects Next 5 States to Legalize Rec

nextstatesmap

California, Illinois, New York, Nevada and Vermont could become the next states to legalize recreational [click to continue...]

Sheriffs File Lawsuit Over Colorado Legalization

Sheriffs from three states have filed a lawsuit against Colorado over recreational marijuana, presenting another [click to continue...]

Another Nat’l Poll Finds Majority of Americans Favor Legalization

Some more good news for cannabis activists and businesses: A respected national poll taken every [click to continue...]

Insurance Firms Urged to Craft MJ Policies

marijuana insurance

Mainstream insurance companies should start crafting policies to cover legal marijuana businesses as the industry [click to continue...]

DC Bans Consumption at Private Clubs

In a bid to curtail premature business opportunities tied to recreational marijuana, city leaders in [click to continue...]

$36 Million Raised for Ohio MJ Legalization

A group in Ohio has already raised $36 million for a proposed ballot measure that would [click to continue...]

PharmaCann Poised to Hold Most IL Licenses

illinoismedicalmarijuana

After a medical marijuana company abandoned its cultivation license on Monday in an area west [click to continue...]

WA Could Outlaw Marijuana Vending Machines

Washington State entrepreneurs hoping to sell marijuana through vending machines or drive-up windows took a [click to continue...]

Cannabis Producers Have New Worry: Stoned Rabbits

Cannabis businesses face opposition from anti-marijuana advocates worried about the drug falling into the hands [click to continue...]

Nevada Senator: Secrecy in MMJ Licensing Process a ‘Disaster’

Las Vegas MMJ

Nearly 40% of the 519 businesses that applied for medical cannabis business licenses in Nevada [click to continue...]

Florida’s Second Stab at CBD Rules Questioned

Florida is having a hard time figuring out rules for its CBD industry. The state [click to continue...]

Maine Medical Cannabis Sales Total $16.2M

Dispensaries in Maine sold an estimated $16.2 million worth of medical cannabis last year, while [click to continue...]

Oregon Agency Weighs in on MMJ, Rec Rules

Oregonoutline

Oregon could keep medical marijuana completely separate from recreational cannabis when retail sales begin next [click to continue...]

Missouri Awards Hemp Cultivation Licenses

Missouri has joined the growing number of states legalizing CBD-based medicines. The state awarded cultivation [click to continue...]