Even before Colorado legalized marijuana, investments from those outside of the state were prohibited. Former Governor Hickenlooper upheld that ban. But, under Governor Jared Polis, that ban has been abolished.
Ending the ban will allow companies from outside of Colorado to bring new products to the state, according to Vail Daily. Some national marijuana chains are expected to buy some of the smaller mom-and-pop marijuana stores in the state. Consolidation of some companies due to the outside investment money coming in is also expected.
Kris Kane of 4Front said, “There are arguments to be made from both sides of this. I think there are some positives that are going to come from opening this up to public companies and there are probably some negatives as well. In the long term, you may see a downward impact on pricing, because you’re going to have companies that are now able to build operations of scale and efficiencies of scales they probably wouldn’t have been able to build without that kind of capital.”