A Tempe, Arizona based company named Harvest of Arizona with retail shops throughout Tempe and Scottsdale, has announced a merger this past Tuesday that would in turn make it one of the largest companies in the growing industry.
The deal will in theory be a benefit to the state’s already registered 115,000 patients by lowering prices and bringing with it more variety than ever.
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The merger is occurring with another Arizona cultivator named Modern Flower, currently the leading wholesale supplier in the state. The company has stated that it will soon become “the largest medical marijuana operator in Arizona.”
By January of this year, Harvest will own eight dispensaries and in addition, seven cultivation centers within the state of Arizona, said the company’s CEO, attorney Steve White.
White also was quoted saying that the merger will improve competition, not stifle it. An interesting thought as the company monopolizes on the industry.
With Harvest becoming the state’s largest wholesaler, it will be able to influence the prices of its various vendors while bringing down retail prices.
As more competition enters the market inevitably, prices are expected to come down.
The Arizona Department of Health Services, which grants licenses and oversees the state’s medical marijuana program, reports that 98 dispensaries currently open in the state. Last October, the state decided to give out more licenses than ever, granting 130 licenses to various entrepreneurs looking to open new shops and cannabis-growing facilities across the state. This is expected to increase tax revenues and open the market more than ever.
White has predicted that by 2018, the Arizona industry may be producing more marijuana flowers than can be consumed by patients, which simple economics states would cause prices to fall.
Harvest is expected to triple the number of its employees from around 100 to 300 by next year giving new possibilities, and leaving expansion on the rise.