One of the multi-billion dollar marijuana industries in California is now crawling out after voters chose to legalize cannabis in this election. An estimated number of 9K marijuana cultivation businesses are operating in Sonoma County at a provisional gray market with some regulations and they are now aiming to follow the path of the wine industry that emerged from its prohibition 8 decades ago and grew to global prominence that it enjoys.
However, the harming ordeals of one of the largest cannabis companies “CannaCraft” have made a lot in this industry very fearful, and they show a long, hard and bumpy road from marijuana’s approval in the ballot box to the same on the ground acceptance that is actually enjoyed by beer and wine businesses.
CannaCraft manufactured medical marijuana products that have been legal in the state for the past 2 decades, but operated in a sort of Wild West and unregulated the market. In the month of June, the company’s newly commenced headquarters got raided by the local law enforcement officers, who stated that this process used to make marijuana products was harmful and not legal. The agency seized around $5 million in inventory, equipment and cash. This year, the company drivers have been stopped twice by the California Highway Patrol and in one case 1,600 pounds of marijuana got seized.
The troubles in the business may actually be a sign of things to come after cannabis legalization as the medical cannabis firms like CannaCraft are continuing to face difficulties without any clear idea on state regulations and also the glaring contradiction between the federal ban on marijuana and also the current evolving state laws, which should in theory shelter the firms from prosecution. The cannabis enterprises tackle pretty much in cash as banks, fearing the federal consequences, would not take their business.
Mr. Hunter, who is the founder of CannaCraft, spent his adult life as a marijuana farmer. He was arrested thrice and sentenced in the year 2005 to 6.5 years in the federal prison because he was growing marijuana and was fleeing when there were raids. He stated that the government is asking people to come out in open; however, he feels there is mistrust. There are thousands of cannabis firms in California, which are now weighing if they have to register with the local governments, pay off the local taxes and then become regulated like other firms, or still operate like before in the gray market.