UNDERMINED BY OUR OWN Lack of Enforcement allows Legal Operator to Play Both Sides | STIIIZY


Contact: Jerred Kiloh 





The United Cannabis Business Association, representing licensed cannabis retailers throughout the state of California, is deeply concerned at the news article reported on December 12, 2023 by the LA Times titled “Stiiizy’s founder built an L.A. cannabis empire, while being landlord to illegal dispensaries”

California’s legal cannabis industry continues to struggle due to over regulation and high compounding taxes and the ever thriving illicit cannabis market. It is very concerning to learn that legal operators may now be undermined by having to compete against unlicensed cannabis retailers, allegedly supported by a founder of one of California’s largest cannabis companies, Stiiizy. This company has over 1,200 UFCW unionized employees in over 30 retail locations throughout California.

This year, numerous multi-state operators have left California. This summer, California’s largest Cannabis distributor closed its doors, leaving millions behind in unpaid bills to vendors as well as millions of tax dollars owed to the state & local government. Most recently, several large cannabis retailers and smaller equity retailers have closed their doors as well. All these businesses join the thousands of cultivators, retailers, manufacturers, distributors & testing labs that have failed.

The California cannabis market continues to collapse with little effective leadership from California’s regulators and legislature. The alleged actions by Stiiizy’s founder are indicative of the struggles the legal cannabis market faces. These actions also demonstrate the incentive California’s illegal market continues to have for both businesses and consumers.

These allegations are alarming enough that UCBA President Jerred Kiloh, along with many UCBA Board Members, intend to cease any further purchases of Stiiizy products for resale from their cannabis shops until these allegations are fully resolved, stating “It’s important for the industry to support operators who abide by the law”.

UCBA has sponsored and passed multiple enforcement bills targeting illegal cannabis operations and the owners of those properties, while providing law enforcement the necessary tools to protect the viability of the legal industry, and most importantly, the health and safety of the general public. In the coming year, UCBA intends to introduce new legislation addressing the ongoing over taxation and poor regulation of the industry and will always support legal operators seeking to operate responsibly.

UCBA continues to fight for responsible regulation, taxation, and enforcement. UCBA in no way can condone the alleged actions by Stiiizy founder as detailed in the article. While UCBA represents cannabis retailers, it is important to note that Stiiizy is not a member of UCBA.

For the sake of all legal operators, who continue to strive to run their businesses responsibly, UCBA encourages Attorney General Bonta and the Department of Cannabis Control to fully investigate these allegations in order to protect the investment and hope of legal cannabis operators throughout California.

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