Colorado's Cannabis Industry is Falling on Hard Times

Truman Bradley of the Marijuana Industry Group says the hay day of Colorado pot is over. Competition from other states and the federal government isn't helping either. "We can't cross state lines now - the Federal Government won't allow it. If there is any kind of over production or a drop in demand - there's no place for the excess supply to go!" In February medical marijuana sales dipped to their lowest point and Bradley says regulations are tough. "Here in Colorado the state's Rule Book for Marijuana is over 500 pages long - and the Rule Book for Alcohol is 112 pages total!"

Put it this way: The cannabis entrepreneurs in Colorado are facing a perfect storm of problems. Now there's too much supply, not enough demand, prices are plunging and cannabis tourism is falling. Bradley says their taxes are outrageous. "Marijuana companies pay a federal income tax rate north of 70%. It's extremely hard to make a profit at that rate!"

Inflation is killing them and industry insiders are warning that hundreds of pot shops could go out of business this year. There are still a lot of plants being harvested and fewer places to sell it. add to that the competition from hemp products and the black market.

Colorado's also suffering with a lack of cannabis tourism.

photo:Getty