Maryland saw a windfall of more than $14 million from cannabis sales taxes in just the first quarter of this year. As the state celebrates the first anniversary of legal recreational cannabis, sales continue to climb.
Connor Whelton, ReLeaf CEO and cofounder, says business is thriving in this environment. He and his team have introduced creative ways to serve their customers. From home-delivery services to a walk-up window and an inviting in-store menu, the Maryland-based company made accessibility a priority. Whelton says he notices a shift in his clientele as the negative perceptions of marijuana diminish.
With recreational cannabis now legal in 24 states, the U.S. Drug Enforcement Administration is working on reclassifying the substance to a less hazardous category under the Controlled Substance Act (CSA).
According to a Carnegie Mellon University survey, the number of daily cannabis users has surpassed that of regular alcohol drinkers for the first time, with younger persons being the main drivers of this development. Further, a 2022 New Frontier Data survey found that 69% of adults between the ages of 18 and 24 would rather use cannabis than alcohol.
Maryland legalized adult-use marijuana in July 2023. The excitement was palpable, with many eagerly lining up to make their purchases. Since then, recreational sales have surpassed medical sales.
Recreational sales have generated $462 million in sales so far this year, with sales of $63 million in April alone, compared to $30 million in medical sales. The comptroller’s office reported that from January to March, the state collected $14.6 million in sales taxes. With $6.7 million, the D.C. region made the largest contribution, followed by the Baltimore region with $3.7 million. Additionally, more than $4 million will be reinvested in lower-class communities affected by the drug wars.
Ben Burstein of Leaf Link, a wholesale marketplace, praised Maryland’s market launch as one of the most successful in the decade-long history of legal marijuana sales. He noted that the state’s sales have more than doubled since the introduction of the recreational market.
However, marijuana retail prices in the state remain relatively high, with the median price per gram being $9.64. “Maryland had the highest pricing per unit in the country last summer. Although prices have begun to decline, they are still expensive in comparison to other states,” noted Burstein.
The state recently gained national attention when Governor Wes Moore pardoned more than 175,000 individuals convicted of minor cannabis-possession charges. The state has also launched a program to help those formerly convicted secure jobs in the marijuana industry.
Equity has been a focal point in Maryland’s licensing process. The state made history by becoming the first to offer a licensing round limited to eligible social-equity candidates for all license types.
The booming market for adult-use marijuana in Maryland is likely to spawn many success stories by licensed companies in the state following the trajectory of more successful entities elsewhere that are operating in other legal markets within the country, such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ).
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
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