Among the many complications facing today’s leading cannabis brands is finding a way to execute a multi-state expansion strategy. Federal law prohibits interstate cannabis shipments, so product manufacturers are faced with a dilemma: Either own the licensed facilities in the states to which they wish to expand or partner with other companies that are licensed in those states.
The latter is a common solution to the problem. It’s more cost-effective and allows canna-businesses to in essence ‘rent out’ their intellectual property–detailing how to design, create and commercialize their products–to chosen partners in new states. These partners can then get the cannabis products on shelves in new markets, with the original business maintaining ownership of the methods, technology and brand.
