The past year for the Illinois cannabis industry revealed continuing tensions and disparity between the rosy picture painted by officials; the reality for businesses on the ground; and the downstream impact to patients and consumers.
There was no movement legislatively with respect to changes to existing cannabis law or regulations, nor was there any movement in prohibiting or regulating intoxicating hemp products found in unregulated "hemp shops" that compete with regulated cannabis products found in state-licensed dispensaries. While the number of operational dispensaries and craft grows increased, some licensees, like the independent transporters, have been left with nothing to show for their time, effort and money.
Many licensees have simply thrown in the towel and left the industry altogether for a number of reasons, not the least of which is the inability to raise funds to launch their businesses. Large scale M&A activity among Illinois multi-state operators (MSOs) has shifted almost entirely to debt refinancing and restructuring as MSO long term debt becomes due, with smaller transactions, like the sale of a dispensary license or the purchase of an operating dispensary, being the bulk of transactional activity.
Illinois maintained its position as one of the largest cannabis markets in the country with total cannabis sales exceeding $2 billion in 2024, but legislative gridlock in Springfield continues to stymie the market.
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