MIAMI, Jan. 21, 2020 /PRNewswire/ -- MediGreen US, a leading innovator of vertical production and retail services for the cannabis industry, announces an agreement in principle to acquire a farm in Oregon. The move comes shortly after Oregon's legislature voted to allow interstate commerce in cannabis-related goods, and awaits a license from Oregon authorities.
Since 2014, Oregon's legal recreational-cannabis industry has developed even more successfully than its early proponents imagined. Licenses to grow cannabis were distributed relatively freely in legalization's early years, and growers responded enthusiastically. With federal laws prohibiting interstate commerce in cannabis, states have been reluctant to pursue their own agreements. Robust production and a closed retail market have created a glut of cannabis in Oregon that has sent wholesale prices plummeting and threatened the livelihoods of growers throughout the state.
That may be about to change, says MediGreen US CEO Eliran Bar.
"States have been leading the conversation about sensible cannabis laws for decades," he notes, "and they will continue to. It's been a slow process, but the industry has done a remarkably good job of proving its operational soundness and economic value. Interstate commerce—especially between neighboring states like Oregon and Washington—is the next step toward developing a mature nationwide cannabis industry."
MediGreen is uniquely poised to help that development. Its operations include a complete vertical chain, including farms in Colorado and Florida, state-of-the-art testing labs, a proven distribution chain, and successful retail operations. Its entry into the Oregon market promises to advance both the state's cannabis industry and the drive to relax federal prohibitions on the interstate transfer of cannabis-related goods.
"Oregon was just the third state to legalize recreational cannabis," Bar points out. "Back in 2014, that was a bold move. It turned out to be the right one, but six years later the entire industry is ready for the next step."
"We understand why Oregon has curtailed the licensure of new cannabis-growing operations. We also agree the Oregon legislature that the best way forward isn't to contract Oregon's cannabis industry. It's to expand it across state lines. MediGreen is an ideal partner in that effort, and we look forward to helping advance Oregon's cannabis industry and overall economy."
MediGreen is a global cannabis pioneer that leverages research and vertical innovation partnerships to create cross-industry growth.