Cresco Labs, one of the largest medical cannabis producers in Ohio, has planted its first crop of nearly 1000 cannabis plants specifically meant for the recreational market, which could potentially open up in the coming weeks.
Despite sprinting into action just a day after it was announced that the political deadlock on adult-use cannabis licensing had finally been broken, Cresco has cautioned that, given the abrupt announcement, supply chain issues could still be on the horizon.
Earlier this week, Business of Cannabis reported that the Joint Committee on Agency Rule Review gave final approval to regulations that will allow existing medical cannabis dispensaries to apply for dual-use licenses no later than June 07.
The legislation will enable the state’s existing medical dispensaries to apply for dual licenses, which would enable them to begin selling adult-use cannabis immediately, in an effort to speed up access for voters.
One such medical operator is Cresco, which yesterday hosted a press tour to showcase its efforts to be one of the first to market, having now planted nearly 1000 cannabis plants at its facility in Yellow Springs.
Speaking to WCPO News, Cresco Labs spokesperson Jason Erkes. “We’re ramping things up as quickly as we can to be able to supply as much as we can. It’s likely that there’ll probably be some supply shortages or kind of waves up and down, as it takes time for the plants to grow.”
Furthermore, in its recent first quarter earnings call, Cresco’s CEO Charles Bachtell said while the recent developments were ‘great news’, the timelines presented some challenges, Green Market Report reported.
“That comes with its own potential challenges too. The ability to service the significant increase in expected volume in the state of Ohio, just realistically, the CapEx and the expansion plans needed to go from medical to adult use in the doubling, tripling, whatever it may be, it’s going to take more time than nine months to 10 months.”
It came as the multi-state operator unveiled flat first quarter revenues of $184 million, but saw a significant improvement in profitability, helping bump its share price.
Adjusted EBITDA for the first quarter came in at $53m, an 82% increase year-on-year.
