Blum Holdings Inc (BLMH)

[woodman1053]

There are more than 2,500 marijuana business licenses in Colorado and more than 900 of them are for dispensaries (The actual number of physical locations is more around 600, as a store that sells both medical and recreational marijuana counts as 2 dispensaries from a licensing standpoint). That means that there are more dispensaries in Colorado than Starbucks, McDonald’s and 7-Elevens combined -- and the numbers keep growing.

With more and more dispensaries, growers and producers climbing aboard the money train, there is a concern that an oversupply of product could find its way into the black market. This is especially likely in the case of low-quality or contaminated products that dispensaries couldn’t sell otherwise. What can’t be sold to the public due to strict regulatory oversight could easily be sold on the black market to make up for product cost.

There is also concern that an abundance of dispensaries could prove too competitive for small business owners. Pre-established businesses and investors with pockets-full of cash could prove detrimental to small businesses that are more vulnerable to collapse.

Competition is much greater in highly populated areas where dispensaries are more densely populated. Though this is beneficial to the average consumer who can choose the best dispensary based on things like price, quality and location, some dispensary owners aren’t as thrilled.

https://www.coloradopotguide.com/colorado-marijuana-blog/2015/december/26/more-dispensaries-in-colorado-than-mcdonalds-starbucks-combined/