Marijuana Business Magazine March 2019

March 2019 | mjbizdaily.com 79 appealing, said Charlie Bachtell, the CEO and co-founder of Chicago-based Cresco Labs, a vertically integrated multistate cannabis company. In Illinois, for example, there are two license types: one for cultivation, prod- uct manufacturing and distribution, and another for retail. The state also limited the number of retail licenses to 55. “You certainly don’t have to be vertically integrated (in Illinois), but with limited retail licenses in the state, it might not be the worst idea to control the retail destiny for your products, too,” he said. THE CASE FOR SPECIALIZATION If you choose to specialize in cultivation, product manufacturing or retail, there’s an opportunity to focus on a single area of expertise and knock it out of the park, Downs said. “If you do it right, you can create a very successful business for yourself,” Bachtell noted. “There are individual dispensaries—several or a significant number of them—that have north of $15 million or $20 million in annual revenue, and they’re not all owned by multistate operators or people with multiple dispensaries in one market.” OK GA VA NY FL NM TX KS NE SD ND MT WY CO UT ID AZ NV WA CA OR KY ME PA MI WV OH IN IL NC TN SC AL MS AR LA MO IA MN WI AK HI ALLOW These states allow vertical integration for: ● Medical ★ Recreational ✪ Both PROHIBIT These states prohibit vertical integration for: ● Medical ★ Recreational ✪ Both UNCLEAR These states have unclear rules on vertical integration for: ● Medical ★ Recreational ✪ Both N/A These states don’t yet have applicable rules on vertical integration for: ● Medical ★ Recreational ✪ Both DE NJ RI MA VT NH ★ REQUIRE These states require vertical integration for: ● Medical ★ Recreational ✪ Both ★ ● DC CT ● ● ● ● ● MD ★ ✪ ● ● ✪ ● ● ● ✪ ● ● ● ★ ✪ ● ● ● ● ● ● ● ● ● ● ● ● ✪ ● STATE MJ LAWS ● Medical ● Medical & Recreational Charlie Bachtell of Cresco Labs Courtesy Photo Source: Marijuana Business Daily