DC marijuana market set for shake-up as 'gifting' shops transition

Medical marijuana dispensaries are multiplying rapidly in Washington, D.C., as regulators convert “gifting” shops that were operating under Initiative 71.Initiative 71, approved in November 2014 by District of Columbia voters, legalized the recreational possession, consumption and sharing of marijuana among adults while outlawing sales of the drug.

But the measure allowed stores selling non-marijuana items to include a “gift” of cannabis. ADVERTISEMENT Now, however, cannabis retailers operating under the measure have only until March 31 to open as licensed medical marijuana dispensaries, or they’ll be shut down.

Seven medical marijuana dispensaries and eight cultivators were licensed to operate in D.C.after the district legalized MMJ in May 2010 – but far more stores were selling cannabis.

“There’s a safety and health factor – these are undocumented, untested products,” said Linda Greene, owner and CEO of Anacostia Organics, a dispensary in Washington D.C.“You don’t know where this stuff is coming from.” Greene said there were hundreds of gifting shops, which had two years to apply for medical marijuana licenses.

So far, regulators have shut down roughly 35 shops that did not apply for licenses, she said.From pens to pot One gifting shop that made the transition is Monko, which sold pens, T-shirts and other merchandise before converting to a licensed MMJ dispensary that is expected to begin legal sales Friday.

It took Monko about six months to complete the process to become a licensed MMJ business, said CEO Terrence White, who eventually plans to become a vertically integrated operator.“Now we’re all on the same playing field,” said White, who already serves an estimated 26,000 customers in the D.C.

area.“It’s going to come down to who markets the best, who has the best brand identity and who has the best customer loyalty.” It’s easy to get approved to purchase medic...