To support California’s growing cannabis industry, the state has extended the duration of thousands of cannabis cultivation licenses. Sugarmade Inc. is supporting these companies by providing cultivation and extraction equipment. Canopy Growth Corporation is increasing its capacities by educating about medicines and Cronos Group Inc. is testing new technology with new facilities and processing. Green Organic Dutchman is now expanding into the CBD market from organic produce. Finally, GW Pharmaceuticals is working on powerful new medicines to help treat incurable diseases.
The state of California has seen immense growth in the cannabis industry being one of the largest legalized cannabis markets. A recent crisis was diverted, however, when over 10,000 temporary licenses of producers, processors, and retailers were due to expire. The state senate stepped in to extend the licenses until they are able to obtain permanents ones. This demonstrates the state’s positive support towards the cannabis industry and its businesses. There is additional support from companies like Sugarmade – a supplier of necessary materials for the industry, including hydroponic equipment. The state is also in support of such companies as they are helping to build a strong economy.
The federal legalization that took place in December of 2018 greatly boosted the industry and the demand for licenses. CBD is the largest reason for this growth as it is used in a wide range of products such as cosmetics, health foods, and vaping liquids. This high demand, however, has led to difficulties in supply. Companies are learning to navigate this new environment and the demand for equipment to support the industry. We have seen an increase in sales, product lines as well as bottom line. One of the key strategies in expansion is the use of acquisitions and partnerships. The growth of the cannabis industry has positively affected a variety of connected industries and is certain to continue to do so.