California Cannabis Companies Pivoting to Hemp Industry
California cannabis companies are pivoting to the hemp industry due to lower taxes, cheaper regulations, and wider market reach. This shift has caused shock waves in the industry, with concerns about loopholes and lack of regulations for hemp products.
Key Points
- Companies transitioning from cannabis to hemp due to regulatory advantages
- California lawmakers facing challenges in regulating the hemp market
- Hemp industry growing rapidly, attracting former cannabis businesses
Pros
- Lower taxes and cheaper regulations in the hemp industry
- Ability to sell in 30 states compared to just California
- Easier to operate and navigate regulations in the hemp market
Cons
- Concerns about loopholes and lack of regulations for hemp products
- Potential conflict between hemp and marijuana industries
- Uncertainty about future regulations and restrictions