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Minnesota Dispensaries Are Currently Operating at $11M in the Red

MN Cannabis Dispensaries

Minnesota’s dispensaries, Minnesota Medical Solutions and LeafLine Labs, have both reported losses for the last two years. Their combined losses total $11 million. The state’s tight medical marijuana regulations are the primary contributing factor to the companies’ losses.

Minnesota Medical Solutions lost $1.2 million in 2016, KTSP 5 News reports. LeafLine Labs lost $4.7 million in 2016. The state has expanded the medical marijuana program, but it hasn’t seemed to help the dispensaries.

Andrew Bachman of LeafLine Labs says that patients shouldn’t worry about the company’s performance. They also should not worry about the company being around long-term. Despite financial losses, the company is performing better than its initial financial plans. Opening three dispensaries and the additional staff added to the company’s loss.

Bachman said, “This is the cost of doing medical cannabis correctly. The goal was never to post a profit early. It was to take care of people, always.”

Kyle Kingsley of Minnesota Medical Solutions says that he hopes the company will at least break even this year. Kingsley says that increasing awareness for medical professionals and patients may help more people see marijuana as medicine.

Minnesota Medical Solutions (MinnMed), is under the microscope in the state. They are still involved in a court case regarding its executives transporting medical marijuana oils to New York.

Both manufacturers quadrupled their revenues with the addition of chronic pain to the qualifying conditions list. Despite the large increase, they both reported losses.

Representative Nick Zerwas says that the companies should give the expanded program a year before reevaluating.

Zerwas said, “I don’t think there is going to be any appetite for a …broadening of conditions or delivery forms. It’s not the job of the state government to create conditions in which private companies can be profitable for selling marijuana.”