Multi-State operators or MSOs are impactful in cannabis businesses. New Mexico passed new cannabis laws which will allow citizens to get a license for recreational production. The licensing process is very new at this point. New Mexico’s business model is set to be vertically integrated like many other states.
What is the future and impact of MSOs in New Mexico?
Concerns regarding MSOs in New Mexico?
Multi-state operators (MSOs) are an intriguing model for many cannabis investors. Some people are afraid that they are getting on top of the cannabis food chain. People are worried about the system that they can establish. New and small business owners will become irrelevant if MSOs in New Mexico take over.
New Mexico business model
The New Mexico business model is vertically integrated. This type of business model hinders the corporate takeover over small businesses. It is a seed-to-sale business model. The business owners are ready to grow their cannabis and sell it wholesale to retail buyers or markets.
MSOs in the cannabis business
Multi-state operators help a cannabis brand expand nationally. The brand’s name after association with an MSO can grow exponentially. The MSOs have large investment resources. They invest in cannabis business owners in new states and buy their products for sale.
The business owner gets the advantage of selling their product and getting money and recognition. The MSO has the potential to grow in new markets rapidly because of its high investment potentials.
The federal laws restrict the interstate commerce of cannabis. Cannabis in one state can not be sold in another state. MSOs have to comply with these laws. If an MSO takes a product from one state and sells it in another, it will be a federal crime.
MSOs in new markets
New Mexico’s cannabis market is very new and holds a lot of potentials. Many producers are trying to get a license and start cannabis production. This is a key moment for MSOs to step in and offer resources to the producers to aid their operation. In turn, the MSO will get the product and sell it under their brand name, which will profit them.
MSOs in the medical business
New Mexico has had medical marijuana businesses since 2010. Several MSOs have set foot in the cannabis market and look forward to expanding their operation in the recreational business.
The MSOs in New Mexico hold a lot of potentials. The pivoting point is MSO collaborations with the right business owners. MSOs have to find the right counsel in New Mexico if they are from another state.
MSO supremacy – a threat for small businesses?
In New Mexico, most business owners haven’t gotten their licenses. If a handful of MSO companies start to take over the market from the start, what will it mean for small businesses? MSOs in New Mexico have been successful in the past and dominated the medical markets. We have to wait and see the impact and growth of MSOs in the business model. Business owners are hopeful that the state laws will provide room for all businesses to grow equally.