Business
Rhode Island regulators investigating cannabis retailer’s late payments
Rhode Island regulators are reviewing the finances of the Thomas C. Slater Compassion Center, a medical cannabis dispensary that just launched adult-use sales in December.
A check for $500,000 to renew the retailer’s license bounced twice in January, according to Providence TV station WPRI.
In addition, multiple cultivators in the state say Slater owes them a total of roughly $500,000, according to a tally by WPRI.
Because Rhode Island regulations say cultivators must be paid within 30 days, regulators are now investing the issue.
A Slater spokesperson told WPRI that the bounced check was issued from the wrong account.
The spokesperson also said the company is not having challenges with cash flow but did not explain the late payments to growers.
Slater reported $12 million in sales in the first five months of recreational cannabis sales.
Since Rhode Island launched adult-use sales in MMJ dispensaries last December, cultivators have asked the state to open more retail stores amid an oversupply of product.
Those stores could open in 2024.
Slater opened in Providence in 2013, becoming the first dispensary to serve the Rhode Island medical cannabis market.
Source: https://mjbizdaily.com/rhode-island-regulators-investigating-cannabis-retailers-late-payments/