The cannabis industry is getting baked, but not in a good way. You’d expect high times as US cannabis usage booms, but dispensary valuations have gone up in smoke. This unexpected correction has left many cannabis entrepreneurs feeling dazed and confused about their future in an increasingly competitive market.

• Dispensary valuations have nosedived as buyers now prioritize profitability over revenue — stores once worth $2M are now selling for a mere $500K, and experts believe a business with $1M in annual revenue could become “worthless” by next year.
• The industry is also dealing with election uncertainty as delays continue with the DEA’s rescheduling hearing. Despite President Biden’s efforts, changing cannabis to a softer Schedule III classification will likely fall to the next president.

Green haze’s silver lining: Fire-sale prices are attracting a new wave of cannabis entrepreneurs. First-time buyers, including some high-net-worth investors, are taking advantage of rock-bottom prices. As one industry expert told the Green Market Report, “Some of the best fortunes are made during chaos,” possibly signaling a new era for the green rush.