Missouri Weed Market: Illegal Cartel Lawsuit

0:00It's May 1st. Welcome to Kansas News Today, powered by AI. I'm Cory with the story. Missouri Voters Greenlit Recreational Weed back in 2022, but the new rules capped any one outfit at 10% of dispensary. Licenses to keep the market fair. Thing is, good day farm in Arkansas crew that bankrolled the campaign heavy now links to over 60 spots more than a quarter of the state's two. 124 total way, pass with the cap suggests. That loophole popped up because the recreational amendment ditched tougher medical marijuana language on share control or management. Good day farms team helped draft it and since then they've scooped up licenses through a web of LLCs buying our brands like codes, green light, fresh karma and 315 primo. Now two local growers, local cannabis and vibe hit him with a class action suit calling it an illegal cartel that fixes prices, squeezes suppliers and crushes competition. They say this network locks down retail, forcing makers to take massive discounts or get cut off all while Missourians pay more.

1:08Dig deeper and record show a $150 million deal pooling investor cash to grab 10 more licenses with good day farm calling the. Shots on pricing and buys they even brag to investors about hitting 60% margins by bullying vendors into fill or kill deals state regulators are mama mid delitigation but this suit revives old fights over whether the amendment handed insiders the keys as these battles heat up in court Missouri's weed scene hangs in the balance testing if the cap really holds water.