There are many factors acting together in present times that are forcing the cannabis industry to work in the most difficult conditions, always fighting for survival. It is true that there are some specific cannabis ventures that are picking up some profit and have overall success, but that is not the case for most of cannabis businesses, in reality, even a few companies are at risk of being delisted from exchanges due to a continuous drop in their share prices. In an article published by the Washington Post, Nicholas Kovacevich, CEO of KushCo Holdings, shared his insights on the future of the cannabis industry facing the current global coronavirus pandemic.
During this public health crisis, most states have deemed marijuana businesses as essential, therefore allowing the dispensaries to continue running operations. However, this might not be enough to save an industry that has been hanging in the balance for quite some time. Besides the status quo caused by the coronavirus, the insane level of regulation for the industry, the local opposition to allowing more stores getting open and the black market that is still thriving are just some of the reasons that have cannabis sector scrambling to survive.
While other industries are waiting for relief package funds from the government to help with current expenses in times where income is scarce, cannabis companies are completely marginalized from any help due to the current federal illegal status of marijuana. “There’s no money that’s going to be coming into the sector,” Nicholas Kovacevich told the Post. “All of these companies, including us, need to get profitable really quickly or risk running out of money.” For him, it is clear by seeing the lack of federal support how much further society needs to advance regarding cannabis legislation and integration into modern times.