Theraplant, a medical cannabis producer is in major financial trouble. The company has been struggling to make sales and convert their product markets. Their reliance on sales has been a major issue as they have not had enough customers to meet their revenue goals. To try to solve this problem, the company recently announced four new initiatives that focus on consumer protection and adult applications for the Department of Consumer Protection (DCP). These initiatives will hopefully help increase revenue and get them back on track financially. However, until these strategies are successful it looks like Theraplant may be in for some tough times ahead.
A cannabis company based in Connecticut, Theraplant has recently found itself in major financial trouble. This is due to the state’s cannabis law that made it difficult for the company to expand into other areas. In order to save its business, Theraplant announced an acquisition of Greenrose Acquisition Corp., a cultivation facility that would provide production facilities for their products. The facility was expected to be 50,000 square feet and could produce products for both adult and medical markets.
The company had purchased several dispensaries, cannabis growers, and made the Greenrose Acquisition Corp purchase to expand their pharmaceutical solutions. This acquisition was met with excitement as it allowed for the sale of recreational marijuana products. Unfortunately, sales have been poor due to limited products and the company has not been able to make enough revenue. Theraplant is now looking for alternative solutions such as partnerships or further acquisitions by its parent company, Greenrose Acquisition Corp., in order to remain financially viable and continue providing cannabis products to customers and patients in Connecticut.
As Greenrose Holding Inc.’s CEO Malloy said, Connecticuts’ deep expertise in this field is a great asset to their stage multi-state expansion plans. The company has already acquired two state companies and is looking for more opportunities to grow its products into other states.
Governor Malloy said Connecticut’s medical market would not support the increased cultivation capacity necessary for whole flower and other products that Theraplant offers. The company may also look into increasing its offerings with medical marijuana products as well as expanding into other states with more relaxed regulations on recreational cannabis sales.
With the ‘big green explosion’ of businesses across industries, many new businesses are popping up around the United States and many have seen success. But in some cases, it ends up a race to the bottom. This could mean an end to one of Connecticut’s only legal cannabis operations which would be detrimental for those who rely on it medically or recreationally.
Sources:
https://www.ctpost.com/news/article/Four-companies-win-marijuana-growing-licenses-5183225.php
https://www.highlyobjective.com/p/-statehouse-holdings-loudpack-harborside
https://www.ctinsider.com/business/article/Multi-state-company-to-acquire-CT-cannabis-16610152.php
https://magazine.wharton.upenn.edu/issues/fall-winter-2019/growth-opportunity/
https://www.cbinsights.com/company/theraplant
