As discussed in a recent news article from The Fader, one medical marijuana producer is partnering with another large company to turn a closed California state penitentiary into a large medical marijuana farm. The company with which he has chosen to partner is a well known manufacturer of medical marijuana oils and extracts. Extracts are a growing sector of the business and they can be sold directly to patients or used by those who manufacture edible marijuana products.
The prison that will house this new marijuana farm is the Clermont Custody Center located in Coalinga, California. It was purchased by this investor for just over $4 million and a restructuring of county debt in the amount of $3.3 million.
Just looking at these financial figures should give you an idea of how lucrative medical marijuana in Los Angeles and the rest of the state can be, and this is only expected to increase if Proposition 64 passes in November’s election. This is the direct ballot initiative that will allow voters in the state to decide if marijuana should be legal for recreational purposes. This would likely lead to a major expansion in the industry.
The owner of this new medical marijuana feels that this setting is appropriate is because so many people have been locked up and sacrificed so much for medical marijuana over the years. Many people may have been in this very same facility so to use it to help medical marijuana patients well be fitting.
As our Los Angeles medical cannabis attorneys discuss with many clients, if Proposition 64 passes and marijuana becomes legal for recreational use, these businesses will be in a perfect position to capitalize on the increased demand as we have seen in other states like Colorado. This will increase profits for those in the industry and make millions in new tax revenue for the state. We will also see many new jobs created as a result of the ancillary services that go along with the growth and sale of medical marijuana and recreational use marijuana.
However, while there will be a lot of opportunity to make money in the recreational marijuana industry, there will still be a great deal of regulation from the state government and there will be federal laws that must still be followed. There will be issues with banking, and it is still possible to end up in a prison that is still in operation as marijuana is still technically illegal at the federal level.
It is for this reason that you want to make sure to speak with an experienced medical cannabis attorney as early in the process in the process as possible. While some people are hesitant to spend money on legal services, making sure things are done right in the first place will often save you a lot of money in the long run. Making sure you are not running afoul of any federal drug laws will also help keep you out of a jail or prison.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 714-937-2050.
Damian Marley Is Transforming A California Prison Into A Marijuana Farm, October 4, 2016, By Ben Dandridge-Lemco, The Fader
More Blog Entries:
Nuisance Abatement Laws Result in Eviction for Marijuana Users, Sept. 13, 2016, L.A. Marijuana Lawyer Blog