Recent Raid On Medical Marijuana Dispensary in Colorado Causes Price Drop In Business Sale
Staff CMM - Tuesday, June 05, 2012
As the medical marijuana business in Colorado grows, it’s easy to assume that the price to buy an existing business will go up as well. However, it only takes one incident to cause the prices to plunge. Cannabis & Co., a Denver-based dispensary, was raided recently by local law officials and the owner was arrested as part of a sting operation. As a result, the dispensary was put up for sale at the low price of $129,000, which is less than half of the original listing price of $289,000. With such a low listing price, this dispensary has the potential to be a prime acquisition for an existing dispensary looking to expand. Many dispensary owners spent close to $100,000 just to comply with new state regulations. As the prices of dispensaries such as this one begin to drop, some fear this may signal a downturn in the overall medical marijuana market in Colorado, especially considering the recent action by the U.S. Attorney in shutting down many dispensaries in Boulder, Colorado. Supporters of medical marijuana in Colorado feel that these recent events may be enough to deter any would-be entrepreneurs from opening a medical marijuana business in Colorado in the near future.
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