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Medical Marijuana Shakedown: Latest Cannabis Dispensary Closures in Colorado

Medical Cannabis Colorado Dispensary UpdateBOULDER, Colo. — In response to a warning letter from federal authorities, three medical cannabis dispensaries in Boulder, Colorado have decided to shut their doors. The three cannabis storefronts that have decided to call it quits are among the dispensaries affected by the school zone warning letter sent by federal officials.

UPDATE 5/9/2012: All 25 of the medical cannabis dispensaries in Colorado that received warning letters for being within 1,000 feet of schools have heeded the threat from the U.S. Attorney's Office and closed. The Denver Post also has reported that a third round of letters is expected soon.

Earlier, federal authorities have identified and contacted around 25 medical marijuana dispensaries located within 1,000 feet from a school. The MMJ establishments were warned that they would have to either relocate or shut down on or before May 7 or face sanctions.

In today's risky MMJ market any dispensary closure has a detrimental effect to the Medical Cannabis Industry.

We are not just talking here about employees who lost their marijuana jobs or Cannabis investors who have seen their capital go up in smoke, we are also looking at a humanitarian tragedy as medical patients see their options get narrower due to the federal crackdown. If that isn't bad enough, there are also secondary players who got hit by these recent closures, from MMJ Business lawyers assisting in legal aid to dispensaries to even the makers of medical marijuana containers and all providers in between suppliers of both products and services to medical marijuana dispensaries.

The first wave of shut downs took place when more rigorous rules took effect in July of 2011. Not only did those regulations scare patients off to illegally obtain Marijuana in the black market, but surrounding dispensary operators instinctively got intimidated by the risks imposed by the federal government's actions and decided to shutdown.

These numerous waves of crackdowns have reduced the number of medical cannabis dispensaries in Colorado from more than 800 establishments almost 2 years ago to fewer than 700 now. Furthermore, the number of patients officially registered with the state's medical marijuana program as reported on February 29th of this year, is still 43,500 patients below the peak enrollment recorded back in June 2011.

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