The Los Angeles marijuana market is enduring more licensing delays. This time, it’s for a government-ordered audit of the city’s cannabis regulators.
It means more uncertainty for marijuana firms. And, perhaps most excruciating, it means more money down the drain.
That’s the ongoing narrative surrounding the L.A. marijuana market, where hundreds of entrepreneurs have waited months to learn if they can launch legal cannabis companies.
All the while, illegal shops continue to flourish in Los Angeles.Some, in fact, have reported losing tens of thousands of dollars paying rent on would-be licensed marijuana shops that have gone unused, and that doesn’t include the money they also may have spent on application fees or down payments on potential remodels and build-outs.
That same tune will play for the foreseeable future, since the city’s mayor earlier in November decided a third-party audit of the L.A. Department of Cannabis Regulation is needed before any more permits can be issued.
The audit is the latest cause for stakeholder frustration – and could even lead to many businesses quitting the L.A. market altogether, several insiders said.
That’s because prospective business owners may not be able to afford to wait, or they may decide the return on investment doesn’t add up.
Published: November 27, 2019