Steve White, CEO of multi-state operator Harvest Health & Recreation, told investors the company controls seven permits in Pennsylvania, enough to open 21 shops. Pennsylvania limits operators to five permits.

Philadelphia Inquirer investigation found the company is “using loopholes” to control more of the market than law allows a company to own. These loopholes include “management service agreements” which enable companies to govern and profit from licenses they do not own.

  • The story says: “Harvest skirted the state cap on permits by applying through firms with slightly different names.”
  • CEO White believes the cannabis market will be as “oligopolistic” — run by a few companies.
  • Pennsylvania lawmakers, the piece says, weren’t “prepared for creative arrangements that well-financed marijuana companies are using to control more permits than the law intended.”

Quick Hits

  1. The CEOs of Acreage and Canopy Growth discussed their plans to become a global cannabis player once the companies complete their proposed merger.
    Yahoo Finance
  2. Multi-state operator stocks are under pressure. While several large mergers have been announced, the U.S. Justice Department is stepping in with anti-trust concerns.
    New Cannabis Ventures