In Maine, the state's cannabis laws were amended three years ago to help small, mom-and-pop businesses in the marijuana sector. These are known as "caregivers" within the state. It was intended to give smaller businesses the chance to compete with larger dispensaries, opening storefronts and hiring more staff.The state is proposing new regulations that could threaten to end the three-year-old opportunities. Curaleaf Holdings, an integrated vertically-integrated cannabis operator with annual sales in excess of $1 billion and a multitude of dispensaries located across 23 states, is one of those companies. Maine is one of those states, with four dispensaries currently in operation and another on the horizon. Curaleaf could end up giving some revenue to mom-and-pop shops depending on the direction that new regulations take.What's at stakeThe new regulations propose detailed mandatory tracking for marijuana products, mandatory testing of purity and sanitation in the medical marijuana market, as well as additional security requirements.The state House and Senate passed a bill in a special session that took place in June. This will allow for new regulations to be temporarily halted while further investigation is conducted. This is a huge win for small businesses. This win will save caregiver shops money on new regulations and allow them to take time to prepare for any new regulations that may be applied by the state in 2023. There could also be additional overhead costs associated with monitoring and tracking products. This preparation could be very useful in the event that marijuana is legalized at the federal level. If this happens, there could be higher taxes and overhead costs for mandatory tracking.The cost of tracking marijuana plants through their supply chain, from seed to sale, is one of the most costly costs for smaller marijuana businesses. This can result in the need to hire additional staff to ensure compliance. Many small businesses are run by one owner and/or few employees. These guidelines do not allow for strict monitoring.A company can retain more sales profit, which allows it to have a longer lifespan and potential for future growth. For a large business like Curaleaf it can mean more competition which makes it harder to get a larger share of the state's growing market.Grab Your ChanceMaine's marijuana industry employs 5,200 people and has more than 3,000 licensed small business. To become the state's top-selling marijuana market, the state's annual value has reached $220 million. The state's No. 1 agricultural commodity is potatoes, which are $184 million. Blueberries are third at $26 million. Maine's recreational cannabis market is expected to reach $394 million in 2024. This represents a substantial 80% growth rate in the next two- to three years.These numbers make it easy to see that the state's marijuana industry is growing in popularity. It is also clear why smaller marijuana businesses oppose any new regulations. 75% of all marijuana sales in the state are made by mom-and-pop stores.Next stepsThe Senate and House overwhelmingly voted in favor of the new regulations. They are supported strongly by small-business caregivers. In the bill's guidelines, the Maine government is required to create a process that includes qualified patients and caregivers when it hires consultants to help with new rules regarding medical marijuana.Although Curaleaf could lose some revenue as a result of regulation review, it doesn't mean its revenue will decrease. This change in Maine is not a reason for you to bail if Curaleaf is your investment. In fact, it might be a good time to look for an entry point if you have Curaleaf shares. The stock price has fallen from $18.30, a 52-week high, to $14.40 today -- 27% below its peak.
