MediPharm is suing Hexo after Hexo failed to honor a supply agreement between the two parties. The alleged breach demonstrates the challenge faced by many operators when it comes to implementing supply chain management at this early stage in the industry’s life cycle.
The SAFE Banking Act became the first standalone marijuana bill to be passed by a House floor vote in September 2019. Since then, the SAFE Banking Act has languished in the Republican-controlled Senate. For now, it appears that legal cannabis operators will have to continue to survive without full access to banking based on the current environment in DC.
California’s legacy, illegal operators can sell cannabis at a lower price point than licensed, legal operators due to the high taxes and local control provisions dictated by Proposition 64. Governor Gavin Newsom has proposed a handful of changes to alleviate these challenges, but, for now, licensed operators will have to endure the current environment.