Last week, Wellness Connection filed a motion to protest a lawsuit against the state of Maine, which was launched by two small marijuana businesses over recreational marijuana licenses that were awarded to out-of-state firms.
Wellness Connection, which is controlled by Delaware-based investor High Street Capital Partners, manages four medical marijuana dispensaries in Maine. The recreational marijuana market in Maine is relatively new, having launched on October 9 of this year. Despite its youth, the market is expected to soon eclipse the medical cannabis market size, with total sales projected to be $76 million this year; adult-use cannabis sales making up $20 million of that amount.
By 2025, it is projected that sales will grow almost four times as high, to $295 million, with adult-use marijuana sales dominating the market sales with $265 million. The cannabis business also promoted the growth of cottage industries such as tourism.
Earlier in March, Wellness Connection sued the state of Maine over a legislation that restricted cannabis businesses with out-of-state owners from participating in the adult-use market. The company dropped the case, however, after the state confirmed that it would not be enforcing the law, which required every manager, director or officer of an adult-use marijuana business to be a resident of Maine and file taxes in the state for at least a four-year period. The state gave the reason that the residency requirement would not hold up in court.
The new motion was filed by the company on behalf of its adult-use business, NPG, in a bid to get the lawsuit of the two medical cannabis caregivers thrown out of court. The caregivers claim that the state cannot decline to enforce the law that restricts out-of-state business owners from setting up shop in the state. This is despite the state eliminating the residency requirement in May of this year.
The new motion puts the state and Wellness Connection on the same side as defendants, which is ironic. The company is currently working on converting its medical cannabis business into an adult-use cannabis business, as its executives believe the latter is more lucrative.
In its earlier lawsuit, Wellness Connection claimed that the requirement hindered the company from raising the funds that would facilitate the transition. Currently, NPG holds an active cultivation license for adult-use cannabis, an active manufacturing license and an additional five conditional approvals for four dispensaries and another manufacturing facility.
One interesting cannabis industry sector player you should watch is Pac Roots Cannabis Corp. (CSE: PACR). This company selectively breeds high-end strains of cannabis in order to make premium products for the Canadian market and its international partners.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CNW420.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer
Do you have questions or are you interested in working with CNW420? Ask our Editor
CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CNW420 is part of the InvestorBrandNetwork.