Arkansas: over $6 million in revenue after three months of legal medical cannabis sales

Sales of medical cannabis in Arkansas reached $6.04 million, just three months after legal sales began in the state.

Earlier this year, Arkansas issued five large-scale cultivation licenses, and 32 dispensary licenses. The first dispensary opened its doors on May 10, more than two years after Arkansas voted to legalize medical cannabis by approving Amendment 98 to the Arkansas Constitution in November 2016. The Arkansas Medical Cannabis Commission has been slow to issue these licenses due to various legal and bureaucratic delays.

Under the amendment, patients suffering from one of the 18 medical requirements can legally purchase, possess and use therapeutic cannabis. It can also be purchased by caregivers. As of Friday, August 23, 19,992 cannabis cards had been approved by the Arkansas Department of Health. Industry representatives expect the number of patients to double or triple once the market is sufficiently developed.

A record start

Arkansas cannabis sales of $6.04 million far exceeded initial sales in Ohio, which has a population of 11 million, nearly triple the population of Arkansas. Ohio's first dispensary opened in January 2019. Over the first three months of legalization in Ohio, dispensaries sold less than $2.5 million worth of medical cannabis, according to a report from Cincinnati Enquirer, which attributes slow sales to high prices.

In July alone, the state of Arkansas collected $91,213 from the special 4% tax on medical cannabis transactions, and $77,358 from the normal drug sales tax, according to the Department of Finance and Administration.

So far, there are only 8 dispensaries open in the state, which alone have sold almost 400 kilograms of cannabis. 24 new dispensaries are due to open shortly. According to state forecasts, sales should exceed 500 kilos after four months, and reach 1100 kilos by the end of the year. Two of the five cultivation companies have yet to open. Delta Medical Cannabis Co. and Natural State Wellness Enterprises, both in Newport, have scheduled opening dates before the end of 2019. The unopened dispensaries have various opening dates planned, but most said they expect to begin operations in the fall.