More Marijuana Businesses Are Leaving California Due to Business Regulations


Since 2018, thousands of marijuana businesses have closed shop and left California as the state shifts into the legal marijuana market. As a result, California has become one of the most highly regulated marijuana business landscapes in the country.

Marijuana businesses are leaving the state for a variety of reasons, from the inability to obtain necessary local and state licenses to state regulations that are costing business owners so much they can no longer comply.

Although California is the biggest marijuana space in the world, the state hasn’t been very friendly to new businesses, despite lawmaker’s attempts to make the situation better.

Michael Katz used to own Evoxe Laboratories, a vape cartridge firm based in Los Angeles, but was forced to close his business after California started enforcing new legal marijuana regulations. According to Mr. Katz, “All of the pieces of the puzzle were cost-prohibitive. California just became a place where it was not advisable to keep putting resources into the market with all the uncertainty.”

Ask for Advice from Our Legal Team

At Purdy & Bailey, LLP, we know that state and local regulations are making it harder for marijuana business owners to make a profit. That is why our team of seasoned business lawyers is here to assist you and ensure your business interests are fully protected.

If you are thinking about entering the marijuana market in the state of California, you should consult with our legal team to discuss your goals so we can create a strong business plan to make sure you are correctly capitalized and compliant with state and local regulations. We are committed to serving business owners throughout California, and we are prepared to get to work for you today.

Give us a call at (858) 360-7080 to request your case evaluation with a member of our law firm.

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