Persevering with a development that’s seeing Colorado hashish firms consolidate and shut operations amid market pressures, a 3rd main Denver hashish cultivation facility is shutting down after an acquisition.
The newest closure is at Native Roots, a outstanding Colorado vertically built-in chain whose retail shops have been acquired by fairness agency Verdant Capital Companions, which can shut its Denver marijuana cultivation facility and lay off 141 staff, in keeping with a Employee Adjustment and Retraining Notification (WARN) filed with the state.
Verdant first introduced the sale of Native Roots’ retail shops in March. The deal, which noticed Verdant purchase 15 Native Roots shops for an undisclosed sum, closed in late July, in keeping with an organization press launch.
The final day of labor for the Native Roots cultivation workers is Oct. 2, in keeping with the WARN discover filed Aug. 4.
Is Colorado hashish consolidating?
The layoffs got here days after Verdant closed the Native Roots deal.
Following a sample, Verdant saved the retail footprint and closed the cultivation operation. The shops will proceed working below the Native Roots model, in keeping with an Aug. 4 firm information launch.
Verdant CEO Julian Michalowski stated the corporate will spend money on folks, strengthen operations, and broaden its product choice.
“Our objective is simple – turn out to be the retailer clients select in each market we function,” Michalowski stated in an announcement. “Meaning executing at a excessive degree daily, empowering nice groups and creating shops that clients are excited to return again to.”
Now that Verdant has its first retail platform, the corporate plans to broaden by buying extra marijuana shops in regulated markets, the information launch acknowledged.
Why are hashish grows closing?
Mergers and acquisitions have picked up momentum in hashish following President Donald Trump’s December 2025 govt order that led to medical marijuana’s reclassification as a Schedule 3 drug.
The economics behind the shutdown are acquainted to Colorado operators. Wholesale flower costs have fallen from a COVID-19 pandemic peak of close to $1,700 to a mean of $574 per pound, in keeping with the newest figures from the Colorado Division of Income.
At these ranges, working an in-house develop prices greater than shopping for merchandise on the open market, and vertically built-in firms proceed to stroll away from cultivation.
Native Roots joins a number of different Denver-area operators that reached the identical conclusion.
In March, Chicago-based PharmaCann exited the Colorado market, closing its Denver cultivation facility and chopping 132 jobs.
That was after PharmaCann agreed to promote its 17 LivWell retail shops, together with mental property and stock to Minneapolis-based Vireo Development for $49 million in inventory.
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Vireo didn’t purchase the develop operations.
In July, The Cannabist Co. moved to shut its Denver cultivation and manufacturing website and reduce 50 jobs as a part of its Chapter 15 chapter proceedings.
The corporate filed for federal chapter protections in Delaware in March, going through about $270 million in debt to lenders and the IRS.
