Minnesota’s two medical marijuana companies lost a combined $2.4 million in 2018, adding to years of losses that have largely been driven by the state’s tightly regulated program.
Leafline Labs, which has never had a profitable year, reported a net income loss of $1.8 million in 2018, according to financial documents obtained by the Pioneer Press. Minnesota Medical Solutions, which turned its first profit in 2017, fell back into the red with a $610,000 loss last year.
The two manufacturers invested in expanding their operations last year to meet growing demand from the more than 16,000 patients enrolled in the state’s medical cannabis program. The debt the manufacturers took on contributed to their losses.
Despite their losses, the CEOs of the companies say they are hopeful for the future.
“To the public, it’s going to look extremely negative that we’re still posting (losses),” said Leafline Labs CEO Bill Parker. “I think what is a positive sign is how much we’ve decreased that loss compared to previous years. … We have righted that financial ship and we are heading in the correct direction.” [Read more at Twin Cities Pioneer Press]