Almost 60 Los Angeles Based Dispensaries To Be Shutdown
Nearly 60 licensed cannabis companies in Los Angeles face the threat of their licenses being revoked by city authorities by the end of the year, with no obvious way to reintroduce them, according to a new report. The list, which appears to be the largest of its kind in the state, represents only a small fraction of the 418 marijuana licenses issued by the city so far, but it is still a significant number.
Even a council motion warned that some of these firms could be forced out of business next month, but the council is currently on hiatus, with 57 firms given a warning. It is therefore unclear whether the Council could act in time to save these companies.
The situation is hectic for many of these entrepreneurs, said Michael Kiloh, executive director of the United Cannabis Business Association (UCBA), based in L.A. USA. “There are people who have no idea what they're doing, and there are some who don't know what to do”, Kilh said, adding that many of UCBA's 57 members have operated pharmacies in Los Angeles for more than a decade.
Concerned about the impact of the new law on their business and the future of their businesses, he is concerned about the impact on his business.
In an email to Marijuana Business Daily, a DCR spokesman said “there was no way to give companies additional time under the current city law, which will be introduced in July 2021. So it looks like all 57 will have to start over again when they apply for local and state permits - a process that could take months or even years before stores can reopen. In order to obtain a new temporary license or license, the 57 licensees will be allowed to engage in commercial cannabis activities, but they are required to stop operating. To get licensed cannabis companies in the city with all the papers in time, they have the option to submit new applications to the DCR and pay a $1,000 application fee or $2,500 for a permanent license.
At this point, little appears to be being done to avert the closure, according to the Los Angeles County Department of Health.
