Wall Street Analyst Estimates US Cannabis Market Will Reach $47 Billion

For years, “$20 billion by 2020” was an oft-heard refrain from market analysts who saw a bright and prosperous future for the legal cannabis industry. Now, with that horizon fast-approaching, analysts are setting their sights on what the next decade has in store. And one analyst, RBC Capital Markets’ Nik Modi, is seeing green.

Analyst Says Concentrates and Edibles Could Propel Sales To $47 Billion Annually

RBC Capital Markets, an investment bank that’s part of Royal Bank of Canada, issued a memo to clients outlining the rapid growth of the U.S. marijuana sector. The memo, authored by Nik Modi, shows how cannabis sales in the U.S. are gaining ground on beer and wine sales.

Projecting a compound annual growth rate (CAGR) of 17 percent, Modi estimates that the legal cannabis category could reach $47 billion in sales annually in the United States within the next decade, according to Business Insider.

Yet the cannabis market in the U.S. faces uncertainties that Canada does not. Regulatory environments are constantly and rapidly shifting as states implement legalization and adopt different approaches to dealing with federal prohibition. Investing in the industry still carries risk.

But RBC Capital Markets analyst Nik Modi brushed off concerns about the unpredictability of legal cannabis in the U.S.. Instead, he drew clients’ attention to a shift in consumer trends that is already having a major impact on domestic retail markets.

Data from BDS Analytics, included in Modi’s memo, shows that the margin on cannabis flower has steadily declined since the beginning of recreational sales in Colorado in 2012. That’s indicative of a larger national move away from flower and toward cannabis edibles and concentrates.

In Colorado, flower made up 70 percent of legal sales when shops opened in 2014. By the end of Q4 2017, flower accounted for just 46 percent of total sales. Picking up the slack were edibles and concentrates. Both are surging in popularity everywhere, and Modi thinks those forms of cannabis can propel total sales beyond $47 billion a year by 2027.

Including Illegal Cannabis Sales Drastically Shifts Financial Forecasts

Another eye-catching aspect of Modi’s analysis is another BDS Analytics chart showing the estimated U.S cannabis market size. The chart compares cannabis sales to spirits, wine, cigarettes, and beer. From spirits at $58 billion to beer $117 billion, all four categories best cannabis at $50 billion. But interestingly, the chart includes total legal and illegal cannabis sales to arrive at the $50 billion figure. It’s unclear what proportion of that amount is made up by illegal sales.

Other cannabis market analysts say that illegal sales still account for the majority of total marijuana purchases in the U.S. But as legalization continues to channel consumers into the legal market, illegal sales are slowly declining.

While access to legal cannabis expands nationwide, the size of the illegal market remains difficult to measure. So does predicting how much of it will move aboveboard in the coming years.

RBC Capital Analyst Praises Big Investment in Canadian Cannabis

The letter RBC Capital Markets sent to clients also lauded Constellation Brands’ recent $4 billion investment in one of Canada’s largest medical cannabis producer Canopy Growth Corp. Constellation Brands is the firm behind the popular beverage companies Modelo, Corona and Svedka. The company has been moving incrementally into the Canadian cannabis market, upping its stake each time. Nik Modi says he’d like to see more companies make similar moves in the cannabis space.

Marijuana's margin, like alcohol, is going to be captured in the end product, investor says

• When looking to the future of cannabis, Navy Capital founder Sean Stiefel says the marijuana industry will look a lot more like the alcohol industry, than big tobacco.
• Insofar as the alcohol industry has distinctive branding, different product lines and end product-based margins, the marijuana industry could be quite similar.
• In the short-term, Steifel anticipates Canada's impending nationwide legalization will drive marijuana prices way up.

There's going to be a massive undersupply of pot: Marijuana investor  5 Hours Ago | 04:23

Navy Capital founder Sean Stiefel says for the burgeoning marijuana industry, the profit isn't in the plant — it's in the end product.

"We're talking about vapes, oils, edibles, topicals, sprays -- all of that stuff is coming, and as science catches up to marijuana, you'll see more and more of those end products," Stiefel said on CNBC's "Closing Bell."

Stiefel founded New York-based investment firm Navy Capital in 2014. In 2017, the firm launched Navy Capital Green Fund, which invests in public equities in the global legal cannabis industry.

In Denver, where recreational marijuana has been legal since 2014, Stiefel said sales of the cannabis plant don't dominate the market, so much as products derived from the plant. And that's where the big money is.

"Look on the other side of it, the cosmetics and some of the more luxury items -- you can't keep them on the shelves," he said.

As for the future of the burgeoning industry, Stiefel thinks marijuana will look a lot more like the alcohol industry than big tobacco, but will likely share traits with both.

Insofar as the alcohol industry has distinctive branding, different product lines and product-based margins, the marijuana industry could be quite similar. And while Steifel does not consider cannabis purely a commodity, like tobacco, he does hope the cost of the actual plant will decline considerably.

"We actually would like for the price of raw marijuana to come down, because we are believers that the margin, like alcohol, is going to be captured in the end product," Steifel said. "You don't necessarily know the price of grain or potatoes going in the vodka or beer, but you know the price of the beer, and there's tremendous margins to be captured when you make products for the end user."

In the short-term, however, Steifel anticipates Canada's impending nationwide legalization will drive marijuana prices way up.

Marijuana's effects on young brains diminish 72 hours after use, research says

Marijuana is notorious for slowing certain cognitive functions such as learning, memory and attention span (maybe that's why they call it "dope"?). But new research in young people suggests that these cognitive effects, while significant, may not persist for very long, even among chronic users.

The meta-analysis, published Wednesday in the journal JAMA Psychiatry, combines data from 69 previous studies that look at the effects of heavy cannabis use on cognitive functioning in adolescents and young adults. It found that those young people who identified as heavy marijuana users scored significantly lower than non-users in a variety of cognitive domains such as learning, abstraction, speed of processing, delayed memory, inhibition and attention.

"There have been a couple of meta-analyses done in adult samples, but this is the first one to be done specifically in adolescent and young adult samples," said Cobb Scott, assistant professor of psychiatry at the Perelman School of Medicine at the University of Pennsylvania and a lead author of the study.

"We looked at everything from learning and memory to different aspects of executive functioning such as abstraction ability," Scott said. "And we basically showed that the largest effects -- which was around a third of a standard deviation -- was in the learning of new information and some aspects of executive functioning, memory and speed of processing."

Weed users found to have poorer verbal memory in middle age

But when the researchers separated the studies based on length of abstinence from marijuana use, the difference in cognitive functioning between marijuana users and non-users was no longer apparent after 72 hours of marijuana abstinence. That could be an indication "that some of the effects found in previous studies may be due to the residual effects of cannabis or potentially from withdrawal effects in heavy cannabis users," Scott said.

The study comes as America continues to debate the merits of marijuana legalization. Recreational marijuana use is legal in nine states. Twenty-nine states and the District of Columbia have legalized some form of medical marijuana use, with at least three additional states potentially deciding on the issue in the upcoming November election, according to Melissa Moore, New York deputy state director for the nonprofit Drug Policy Alliance.

Studies on the long-term cognitive effects of marijuana use among adolescents and young adults have shown inconsistent results. A 2008 study reported that frequent or early-onset cannabis use among adolescents was associated with poorer cognitive performance in tasks requiring executive functioning, attention and episodic memory.

A 2014 study also warned against the use of marijuana during adolescence, when certain parts of the brain responsible for executive functioning -- such as the prefrontal cortex -- are still developing.

"There have been very important studies showing evidence for irreversible damage (from marijuana use), and so there needs to be more research in this area," said Kevin Sabet, assistant adjunct professor at the Yale School of Medicine and president of the nonprofit Smart Approaches to Marijuana, who was not involved in the new study.

"I hope they're right. We want there to be little effect after 72 hours. But given the other studies that have had very large sample sizes that have been published over the past five years in prominent journals, I think we need to look into that more," added Sabet, whose group is focused on the harms of marijuana legalization.

Marijuana legalization could help offset opioid epidemic, studies find

But a number of recent studies have also shown that the association between marijuana use and reduced cognitive functioning disappears after controlling for factors such as psychiatric illness and substance use disorders, according to Scott.

In an attempt to make sense of these discordant results, the new research combined data from 69 previous studies, resulting in a comparison of 2,152 frequent marijuana users with 6,575 non-users. Participants ranged in age from 10 to 50, with an average age of 21.

The researchers found that, overall, the cognitive functioning of frequent marijuana users was reduced by one-third of a standard deviation compared with non-frequent marijuana users -- a relatively small effect size, according to Scott.

"It surprised, I think, all of us doing this analysis that the effects were not bigger than we found," Scott said. "But I would say that the clinical significance of a quarter of a standard deviation is somewhat questionable."

But according to Sabet, even a relatively small effect size could be important, especially in a large meta-analysis such as this one.

"The small effect size may be meaningful in a large population, and again, all (cognitive) measures are worse for those using marijuana," Sabet said.

"The study is pretty bad news for marijuana users," he added. "Overall, I think this is consistent with the literature that marijuana use shows worse cognitive outcomes among users versus non-users."

In an effort to identify other potential factors that could have affected the relationship between marijuana use and cognition, the researchers also separated the studies based on the length of marijuana abstinence, age of first cannabis use, sociodemographic characteristics and clinical characteristics such as depression.

Of these, only the length of marijuana abstinence was found to significantly affect the association between chronic marijuana use and reduced cognitive functioning. Specifically, cognitive functioning appeared to return to normal after about 72 hours of marijuana abstinence -- a threshold identified in previous studies, according to Scott.

"The reason we chose the 72-hour mark is that in looking at the data on cannabis withdrawal effects in heavy cannabis users, 72 hours seems to be past the peak of most withdrawal effects that occur," he said.

Marijuana legalization by the numbers

However, the 69 studies included in the review did not have a uniform definition for "chronic" or "frequent" marijuana use, one of the study's main limitations, according to Sabet.

"When you put all of these studies together that have different definitions of marijuana users and are from different times, it's not surprising that you'd get a smaller effect size," Sabet said.

The studies also relied on a variety of tests to determine cognitive functioning, including the Trail Making Test, the Digital Span Memory Test and the California Verbal Learning test, according to Scott.

"The other thing that's important to highlight is that we're only looking at cognitive functioning. We're not looking at risks for other adverse outcomes with cannabis use, like risk for psychosis, risks for cannabis use problems or other medical issues like lung functioning outcomes," Scott said.

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But the results still suggest that the negative cognitive effects of marijuana use, while significant in the short-term, probably diminish with time. They also shed light on the need for more research in this area, particularly as cannabis policy in the United States continues to change at a rapid pace.

"As attitudes change about cannabis use and cannabis use becomes a little bit more accepted in terms of policy and government regulation and medical cannabis use increases, I think we need to have a real understanding of the potential risks and benefits of cannabis use," Scott said.

What is BHO?

BHO stands for butane hash oil. It is a potent form of cannabis concentrates that comes in various consistencies including budder, shatter, wax and more. The name comes from the fact that butane is the solvent used to extract the oils from cannabis.

There are dangers involved with using butane to extract, including a risk of explosion. Not to mention, any pesticides, mold or other contaminants that were in the processed weed will end up concentrated in the extract. This means there are risks to both extractors and consumers.

To ensure your safety, the task of making BHO is best left to experts with the proper materials and equipment. There are a lot of errors that can be made during the extraction process that will lead to contaminants in the extract even if the flower used was clean. So if you are a consumer, you’ll want to make sure your butane hash oil is coming from a reliable source.

How Is It Extracted?

Plant material is loaded into a tube and it is soaked in butane as a solvent to separate the oils out. However, there are more than one ways to make butane hash oil.

Open Blasting

 The Glass Underground

The original method of making BHO, which commercial extractors have stepped away from, is called open blasting.

Open blasting is an outdated technique that is considered both dangerous and wasteful. The danger comes from the fact that there is nothing to contain the flammable solvent. As a result, any ignition near where you are open blasting will result in a fiery explosion.

Closed-loop

 Best Value Vacs

There are advantages of closed-loop systems other than having no openings for flammable gas to leak out of. All solvents are filled into a pressurized tank then attached to the extraction tube where all the plant materials are held. It’s worth noting that even though a closed-loop system is safer than open blasting, safety checks, precautions and measures must be taken to ensure nothing goes wrong. Seemingly small issues like a blown gasket can cause much larger issues.

The next advantage is the fact that solvents can be reused. Residual solvents collect in the recovery tank where they can be stored and recycled.

How To Consume It

Consider this a warning, if you are not a heavy cannabis consumer and you have no experience with cannabis concentrates, start slow. They call consuming extracts “doing a dab” for a reason. You only need a “dab” or a small amount to feel the potency.

The most common way to consume BHO is with the assistance of a torch flame, dab rig and nail. Most modern concentrate users prefer low temp dabbing with the addition of a carb cap. E-nails are a great way to enjoy the advantages of low-temperature dabbing without the need for a torch or butane. An e-nail usually consists of two parts: the controller where you can adjust the temperature and the heating element that wraps around a nail.

When BHO first gained popularity, titanium nails were used to drop super hot dabs, seconds after the nail is torched. Since then, dabbing has evolved to more effectively vaporize cannabis oils with minimal compromise to the flavor.

Low Temp Dabbing

Low-temperature dabs involve getting your nail about as hot as can be and waiting for it to cool before dropping the extract in.

Depending on your specific nail and the amount of time you spent heating, you can wait anywhere from about 20 seconds to over a minute. It all depends on how much heat the nail can retain. Once the nail is cool enough to vaporize the oil without completely burning the terpenes and cannabinoids away instantly, it’s safe to drop the dab.

Add the carb cap once the extracts have melted onto the nail. If it was harsh and burnt tasting, with stickiness to your lips or teeth, you went in too hot. If it was smoother and more flavorful than a high-temperature dab, you did it right and there should be some leftover oil to Q-tip up. You have to constantly clean your nails if you want to keep the flavors prominent and maximize vaporization.

Quartz Insert

@hollyhoodbambam

The next step in the evolution of low temp dabbing is the quartz insert. Quartz inserts take things a step further by forcing the concentrates to rapidly go from a low-temperature to a higher one. This allows you to experience cannabinoids and terpenes at a temperature that you previously couldn’t with a nail and cap alone.

Quartz inserts come in different shapes and sizes. The ones we are talking about are in the shape of cups that fit into any of the best quartz bangers on the market.

To taste as much of your terpenes as possible while maintaining a constant level of vaporization, we recommend trying the insert drop technique. Pre-fill the insert with your concentrate and set it aside.

Next, heat up the banger for about a minute all around. Depending on your bangers heat retention and the size of your dab, you can drop the insert in 5 to 30 seconds after you cut the torch flame. Bigger dabs should be dropped sooner. Wait a little longer on fresh nails with thick quartz.

Different Consistencies Of BHO

There are over a dozen different kinds of cannabis concentrates. Even if you use butane every time, the consistency of the material will vary. This is due to the material and techniques utilized during the extraction process. Many look like wax while others have a glassier appearance.

Oil

Oil is what we call the loosest consistency of butane hash oil. It’s sticky and only a bit thicker than a liquid. Oils that are slightly thicker than normal are called saps. Oils and saps are difficult to handle compared to other consistencies. As a result, they have become one of the least popular forms of BHO on the market.

Budder

Budder is a consistency that can be attained by introducing agitation during the extraction process. The name comes from the fact that it is similar in consistency to butter. It looks a little wet and it can be easily scooped and spread. There’s no real advantage to having a budder over a crumble or shatter. It all depends on preference. Wax pen users might prefer budder, crumble or shatter over a sappier oil.

Crumble

Crumble is named after the fact that it crumbles like dry cheese when you scoop some. Everytime you scoop from a wad of crumble, tons of tiny bits that are harder to scoop up break off. Crumble easier to handle than oils but less desirable than budder and shatter.

Shatter

Shatter is pretty much the only form of cannabis concentrate that can be handled without the assistance of a tool. The name comes from the fact that it shatters like glass. In fact, the real glassy stuff will end up breaking and flying off with a tool. Shatter can come in a looser “pull ‘n snap” consistency which is easier to handle with a tool.

Live Resin

Live resin concentrates are almost always made with butane. They differ from other extracts because of the material used. Nugs or trim that was just harvested and cryogenically frozen is used in the extraction process. They can take on different consistencies including THCa crystalline, sauce, sugar, shatter and budder.

Final Hit: What Is Butane Hash Oil (BHO)?

Butane hash oil is the most common method of making cannabis extracts. Most of the concentrates on the shelves of dispensaries are made with it. If you’re not comfortable with consuming or working with hydrocarbons, there is a cheap, easy and non-explosive way to make dabs at home called the rosin technique. Extractors can also make hash without putting themselves at risk of physical harm. Combine the rosin technique with hash making techniques to end up with connoisseur-quality products like live rosin.

Arkansas Judge Considers Effort to Halt Marijuana Licenses

LITTLE ROCK, Ark. (AP) — An Arkansas judge said Friday he’ll rule by the middle of next week on whether to allow the state to issue its first licenses for companies to grow medical marijuana after hearing complaints from an unsuccessful applicant challenging the permitting process.

Pulaski County Circuit Judge Wendell Griffen did not rule after hearing testimony from the state and Naturalis Health LLC, which wants the 95 applications for medical marijuana cultivation facilities to be re-scored by an independent evaluator. The Medical Marijuana Commission had planned to issue licenses to the top five applicants on Wednesday, but Griffen issued a temporary restraining order halting the process so he considered the request for a preliminary injunction.

“This is a potential billion dollar industry,” Keith Billingsley, an attorney for Naturalis, said during closing arguments. “Ninety-five people submitted applications and spent a lot of time, including my client, on this process assuming the state of Arkansas would get it right, that the state of Arkansas would conduct a blind examination of applications and that it would be done in a fair and impartial way.”

Naturalis ranked 38th out of the 95 applications submitted, state officials said.

Arkansas voters in 2016 approved a constitutional amendment legalizing medical marijuana for patients with certain conditions. The commission is expected later this year to license up to 32 dispensaries to sell the drug.

The company’s lawsuit claims the process for scoring applications and awarding the licenses is flawed. The company also cites two potential conflicts of interest, including one commissioner whose law firm represents the owners of one of the facilities that was going to receive a license in non-marijuana related matters. The state, however, has said that the applications scored by the commissioners were redacted and did not include any identifying information about the applicants.

The state has also said Naturalis has not proved it would suffer irreparable harm if the state is allowed to award the licenses.

“The fact that they spent money to get ready for an application and they submitted an application that was a losing application and, if they were possibly scored again and they improved their ranks from 38th to one of the top five, they might then reap the return on their investment, those are speculative harms,” Deputy Attorney General Monty Baugh said.

Griffen earlier Friday also denied an effort by the state to dismiss the company’s complaint, rejecting arguments that Arkansas was immune from the lawsuit and that Naturalis did not have standing to sue.

Arkansas has approved more than 4,500 applications for patients to use medical marijuana and will issue registry cards about a month before the drug is expected to be available legally.

Airport Sets Up Amnesty Boxes For Flyers To Dispose Their Weed

Visitors to Las Vegas have a new way to help keep them out of trouble, as the local airport sets up amnesty boxes for flyers to dispose their weed or other recreational or prescription drugs, giving new meaning to the adage “what happens in Vegas, stays in Vegas. ”

The Boxes

The bright green boxes were installed February 16 at McCarran International Airport as a way for travelers to safely get rid of cannabis or other items that might not be allowed through Transportation Security Authority checkpoints. Recreational cannabis sales were legalized in the state of Nevada on July 1, 2017, but that doesn’t mean it’s legal everywhere.

In October of last year, Clark County, home to Sin City, passed an ordinance outlawing possession of cannabis, marijuana, and THC on  McCarran grounds.

“Marijuana is prohibited on airport property,” said airport spokesperson Christine Crews in an interview with local media. “You could face a citation fine, or you could face arrest depending on what those amounts are,” she added.

The boxes are located just outside the airport terminal so items can be left before entering the building, no questions asked.

The amnesty boxes, as they are called, are about the size of a large trash can and have been bolted securely to the ground. A drawer drop, similar to those on a corner mailbox, prevents anyone from reaching inside and keeps the contents safely inside until they are removed by a contractor.

What Happens After A Drop-Off?

 Travel Weekly

That doesn’t mean a free stash for someone, however.

“They [the contractor] will be collecting whatever’s surrendered and disposing of it appropriately, depending on what contents are in these boxes,” Crews said. “We don’t want your pot; leave it somewhere else, that’d be fine.”

Crews also noted that because cannabis is still illegal under United States laws, the drop boxes will enable the airport to avoid being complicit in smuggling marijuana across state lines.

“Being a federally regulated industry, we want to make sure we are more than compliant with their standards,” Crews said.

The amnesty boxes seem to be getting a positive reaction from travelers. “I think they’re great, said Michael Aldaya, a visitor from Minnesota. “This is probably where you should dispose your drugs.”

Aldaya hedged when asked if he had anything to leave in the boxes. “Uh… I don’t want to disclose that right now,” he joked.

But Shannon, in town from San Francisco, thinks the boxes might not get much use. “I feel like anyone who probably has some sort of cannabis, weed, would probably do it before they threw it away,” she said. “I’d be interested to see how full that gets.”

In the first week of operation, the boxes have collected several vape pens and a plastic bag of pills, according to reports.

Final Hit: Airport Sets Up Amnesty Boxes for Flyers to Dispose Their Weed

So far, 13 of the amnesty boxes have been installed in high-traffic areas of the airport. Ten are located at the terminal, with three more at the car rental complex.

The Clark County Department of Aviation, the airport operator, has plans to install seven more of the amnesty boxes at other sites including the Henderson Executive Airport and the North Las Vegas Airport, bringing the total number to 20.

Marijuana user scores early victory in case that could determine whether employers can fire for pot use

A nurse who was fired from his job at Sunrise Hospital in Las Vegas last year after marijuana was found in his system has won a preliminary victory in his wrongful termination case, which will test whether Nevada employment law keeps pace with increasing public acceptance of cannabis.

In an order filed Tuesday, Clark County District Court Judge Mark Bailus rejected the hospital’s motion to dismiss former employee Scott Nellis’ lawsuit on all but one of five counts. Hospital officials defended their position.

“Backed by our mission to surround our patients with caregivers who are dedicated to healing above all else, we strongly believe we acted appropriately and we are prepared to vigorously defend ourselves in this case,” said Sunrise spokeswoman Fran Jacques.

Nellis’ lawyer said he hopes to take it to a jury trial and the Supreme Court to set precedent.

“This is a fight that I’ve been looking forward to for quite some time. It’s amazing. It’s a new civil right of the 21st century,” said attorney Christian Gabroy.

Nellis was hired at Sunrise in 2009 and ended up working in the behavioral health unit. According to his lawsuit, he was attacked by a patient in 2013 and fractured a vertebrae, which led to him applying for and receiving a medical marijuana card.

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In February 2017, Nellis was again attacked by a patient and treated for injuries at an emergency room, where he was asked to provide a urine sample. After the sample tested positive for marijuana, the hospital told him in early March that he was suspected of working while impaired in violation of company policy.

Nellis argued that marijuana shows up in tests as long as a month after the substance is ingested and maintains that he was not under the influence while working.

“I was unaware that I had, and do not believe, I did anything wrong,” Nellis wrote on a disciplinary form ahead of his firing.

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His lawsuit argues the termination was a violation of Nevada’s medical marijuana law and the Legislature’s direction that employers make reasonable accommodations for marijuana cardholders. It also alleges the hospital was negligent in hiring and training and discriminated against someone lawfully using marijuana — a claim that, if upheld by the courts, could have major implications for recreational marijuana users.

Bailus ruled those claims could proceed, but dismissed a claim that the hospital engaged in deceptive trade practices in the case. Nellis is suing for damages, lost compensation and attorney’s fees and costs.

The case highlights a policy question that came up in the legislative session: What rights do employers have to ban their employees from using marijuana legally? It also underscores a conundrum in the cannabis realm — that the tests used to detect the marijuana active ingredient THC are not a good gauge of impairment in the same way that blood alcohol level can gauge drunken driving.

“My whole goal here is that any employee who is ever terminated for a positive THC finding is going to get the justice they deserve in the courtroom,” Gabroy said. “Our voters, our electorate approved this stuff. We’ve done it in the constitution, we’ve done it at the ballot, and that should not be taken out of context to cause someone financial devastation in a wrongful termination.”

How Many Dispensaries Are In Each State?

How many dispensaries are in each state? With 29 states that all have some form of legalized marijuana, the number of dispensaries in the country is rapidly increasing to serve existing and emerging markets. States like California have recently implemented their recreational marijuana laws. As a result, many old dispensaries have shut their doors and new ones have surfaced as companies await their license to sell. We used data from state governments with legalized marijuana to see how many dispensaries are in each state.

Recreational Marijuana State Dispensaries

With many states adopting recreational marijuana laws, the number of dispensaries countrywide is rapidly changing.

California

Dispensaries: 261

California was the first state to legalize medical marijuana but not the first to go recreational. In 2016, California’s Proposition 64 passed, legalizing the sale of cannabis to adults. There are currently no businesses with full licenses to sell in California. However, temporary licenses are being awarded so retail cannabis is being distributed. According to the Bureau of Cannabis Control, there are currently 261 active temporary retail licenses to sell cannabis for adult use.

Nevada

Dispensaries: 61

Nevada had their first medical marijuana dispensaries opened in 2015. Residents voted to legalize recreational cannabis in 2016. The laws went into effect on January 1st of 2017. Now, weed can be legally acquired at any of the 61 dispensaries listed on the state government’s website.

Alaska

Dispensaries: 93

In 2014, Alaska voted to tax and regulate the legal production, sale and use of marijuana. A license search on the Department of Commerce, Community and Economic Development website yields 93 results for Oregon dispensaries.

Dispensaries: 560+

According to the Oregon government website, the number of approved licenses to marijuana retailers went from 213 in July 2016 to 560 by the end of January.

Washington – 103 retail stores

Dispensaries: 103 retail

Washington has had recreational marijuana for quite some time now so there are now many dispensaries in the state. According to Washington’s Department of Health website, there are currently 103 retail cannabis stores but many more “medically endorsed stores.” This means they have medical marijuana consultants on staff.

Colorado

Dispensaries: 520

Colorado has by far, the largest number of dispensaries in any state. The Colorado Department of Revenue has a list of all the licensed recreational and medical marijuana dispensing centers. There are 520 recreational facilities with 505 medical ones as well.

Massachusetts

Dispensaries: 19

On November 8th, 2016 Massachusetts became the first state on the East Coast to legalize cannabis. As of December 31, 2017, Massachusetts has 19 registered marijuana dispensaries around the state.

Medical Marijuana State Dispensaries

California was the first state to legalize medical marijuana in 1996. Since then, about half of the nation’s states have legalized medical marijuana. In states with strict laws, medical marijuana is limited to patients with truly debilitating conditions. Other states that allow a wider range of patients to register as medical marijuana patients and they have more dispensaries as a result.

Maine

Dispensaries: 8

8 total Medical Use of Marijuana Program Dispensaries

Maine joined Massachusetts in legalizing recreational marijuana on the East Coast. However, retailers currently have no way to get the required licenses. As a result, the only dispensaries in the state are only accessible to medical marijuana patients. There is currently 8 listed medical use of marijuana program dispensaries on the state government’s website.

Arizona

Dispensaries: 100+

Arizona is one of the first states with a drive-thru dispensary. Unfortunately, they are one of the few states that keep their list of dispensaries confidentialto anyone other than registered medical marijuana patients that cannot grow their own marijuana in the state.

However, the number of dispensaries allowed in the state is somewhere between 120 and 126. The number of dispensary agents is public. There are 4,731 individuals that can distribute marijuana on behalf of a dispensary.

New Mexico

Dispensaries: 68

New Mexico’s medical marijuana law was signed in 2007. Since it’s been more than a decade, there are now many dispensaries for the state’s patients to choose from. The state has 12 manufacturers that distribute from their own dispensaries. Recent data shows a total of 68 dispensaries in New Mexico.

Montana

Dispensaries: 50+

Medical marijuana laws in Montana were signed in 2004. Only patients with severely debilitating or terminal conditions qualify for medical marijuana in the state. Despite this, the number of dispensaries in the state has gradually increased over the year. According to the Montana Department of Health, they cannot give information out about dispensaries. However, there are over fifty listed online.

North Dakota

Dispensaries: 0

The North Dakota medical marijuana law was only signed in 2016. The program is not yet operational and there are no current dispensaries. The program was supposed to go into effect on April 18, 2017. The earliest effective date for medical marijuana rules would be on April 1, 2018.

Minnesota

Dispensaries: 8

The Minnesota medical marijuana law was signed in 2014 and it is currently operational. Several state-licensed dispensaries have opened. In fact, the Minnesota Department of Health has eight locations listed on their website.

Michigan

Dispensaries: 100+

Michigan is currently in the process of accepting medical marijuana business license applications but there are over 42,000 caregivers registered to supply cannabis. There are currently well over one hundred dispensaries listed online but they will close soon if they don’t receive a license when they’re distributed later this year.

Illinois

Dispensaries: 53

Illinois is one of the states with a long list of qualifying conditions but they have a decent number of dispensaries. The medical marijuana laws in Illinois were signed in 2013. Since then, the Illinois Department of Financial and Professional Regulation list 53 licensed dispensaries across the state.

Arkansas

Dispensaries: 0

The Arkansas Medical Marijuana Commission has yet to release the list of licensed dispensaries despite the Arkansas Medical Marijuana Amendment. There is a delay because the law only came into effect in 2016 and the program is still a work in progress. So far the Department of Finance and Administration has released a list of all the names and proposed locations of applicants.

Louisiana

Dispensaries: 0

The Louisiana medical marijuana program has yet to start. Worst of all, the number of doctors that are approved to issue a “physician recommendation form” can be counted on one hand. If all goes according to plan, the program will begin operating this summer.

Florida

Dispensaries: 27

Florida has medical marijuana laws but they are restrictive like the laws in other states like New York. Medical marijuana treatment center is the term for a dispensary in Florida. These centers are responsible for cultivating and processing the cannabis. Additionally, they sell to qualified medical marijuana patients. There are 27 dispensaries total listed on the state government’s website.

Ohio

Dispensaries: 0

The Ohio medical marijuana laws were signed in 2016 but the program hasn’t started yet. The State Board of Pharmacy may award up to 60 dispensary licenses. So far, the board has received hundreds of applicants. There is no one to sell medical marijuana in the state yet. Unfortunately, patients will have to wait while the program starts handing out licenses to sell.

West Virginia

Dispensaries: 0

West Virginia signed their marijuana laws in 2016. As a result, the program is not yet operational. Therefore, there are no operating dispensaries in the state as of now. The West Virginia Medical Cannabis Program will release the application for dispensaries in the first quarter of 2018.

Pennsylvania

Dispensaries: 6

Six dispensaries received approval to start selling medical marijuana products once they are available. The only dispensary to have a grand opening is in Lehigh Valley. Unfortunately, they have no product. Therefore, patients won’t be able to make purchases until mid-February or later.

Maryland

Dispensaries: 0

A judge temporarily halted the medical marijuana industry in Maryland on the request of a company that alleged state regulators ignored racial diversity when deciding who could grow legal cannabis. A trial in June will determine whether state regulators acted outside of the law when awarding the first fifteen preliminary licenses to grow. So, there will still be some time before Maryland sees its first operational medical marijuana dispensary.

Delaware

Dispensaries: 2

Delaware currently only has two dispensaries owned by the same company. First State Compassion is currently the only provider of medical marijuana in Delaware and more are on the way.

New Jersey

Dispensaries: 5

New Jersey adopted their medical marijuana program rules in 2011. Since then, only a few dispensaries have opened up their doors in the state. In fact, the state currently has five operational medical marijuana dispensaries with more on the way.

New York

Dispensaries: 19

New York has one of the stricter medical marijuana programs for patients with debilitating conditions. In fact, there is no actual smokable cannabis available at dispensaries. However, other cannabis products are available at New York’s 19 registered medical marijuana dispensaries. More are opening soon which will more than double the number of dispensaries in the state.

Vermont

Dispensaries: 4

Vermont has had medical marijuana laws since 2004. Despite the early start date, few dispensaries have opened in the state. More than a decade later, there are only four operational dispensaries located in Montpelier, Brandon, Burlington and Brattleboro.

New Hampshire

Dispensaries: 4

The Therapeutic Cannabis Program passed through the state legislature in 2013 but things have moved slowly since then. In fact, only a few dispensaries have opened up. The New Hampshire Department of Health and Human Services lists 4 dispensaries or “alternative treatment centers.”

Connecticut

Dispensaries: 9

Medical marijuana laws in Connecticut came about in 2012 and not too many dispensaries have opened up since then. According to Connecticut’s official state website, there are 9 total medical marijuana dispensary facilities in the state. That will change soon because the state is looking for more medical marijuana dispensaries.

Rhode Island

Dispensaries: 3

Rhode Island medical marijuana patients can purchase their medicine at compassion centers around the state but there aren’t many. As expected with a small state the Rhode Island Department of Health website lists compassion centers in only Providence, Warwick and Portsmouth.

Washington D.C.

Dispensaries: 8

Washington D.C. has legalized recreational marijuana but there are currently only medical marijuana dispensers. There are eight medical dispensaries in the state total but most of them in the North East region.

Final Hit: How Many Dispensaries Are In Each State?

Since marijuana laws in several states have changed in recent years, the online listings of marijuana dispensaries in certain states are unreliable according to research.

“The online listings appear to be inaccurate. We only found 815 out of the listed 2,174 dispensaries were active. This is 37 percent of the listings,” Erick Eschker, co-director of the Humboldt Institute for Interdisciplinary Marijuana Research stated.

The number of how many dispensaries are in each state will change because a few states are currently working on implementing their programs. Once they are operational, the number of dispensaries nationwide will continue to increase.