A cannabis cultivator in Pennsylvania plans to sue the state for allowing large, out of state based companies to monopolize the state market. The cultivator, Hanging Gardens, of Johnstown, and several other cannabis companies, are now working with attorneys to get the lawsuit filed as quickly as possible, due to what they called, “the dire state of the medical marijuana program with regard to both patient access and the survival of Pennsylvania-based businesses.” Hanging Gardens recently laid off or cut the hours of nearly half of it’s 110 employees. They say this is because of unfair competition from large multi-state operators who have taken over the market. Kenney says six multi-state companies own more than half of all the dispensary permits in the state. Hanging Gardens owner Shane Kenney said, “I consider the Pennsylvania medical marijuana program to be in collapse. … The few remaining independent businesses who invested with the promise of fair competition may soon disappear. The existing monopoly has already resulted in some of the highest medical marijuana prices in the country and diminishing patient choice.” Kenney said that Pennsylvania’s legislation on medical cannabis states that no company can operate more than 15 retail locations. But, Kenney says there are at least five multi-state operators who are each running more than that. According to reporting by The Tribune-Democrat in Johnstown, part of the problem stems from multi-state operators acquiring other other operators. Pennsylvania’s medical marijuana industry is overseen by the state health department, and a spokeswoman for them told The Tribune Democrat that while their are limits on permit acquisitions, “that does not mean Pennsylvania can simply prevent equity transfers by those permit-holders.” Kenney said Hanging Gardens and several other independent operators have tried to get help from the health department and state lawmakers on this issue, but were unsuccessful. Now, their only option is to sue the state. Kenny said, “It’s not right for the administration to allow this monopoly to continue to exist, and to take their tens of millions of dollars out of the state, while many of my former employees don’t know how they will now put food on the table.” Comments are closed.
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