Minnesota Medical Pot Companies Lost Millions
ST. PAUL, Minn. (AP) — Minnesota's two licensed medical marijuana manufacturers each lost millions of dollars in their first full year of operations, according to financial documents obtained by The Associated Press.
Minnesota Medical solutions said it lost $3 million in 2015 and more than $500,000 in 2014. Meanwhile, LeafLine Labs lost roughly $2.2 million in 2015. Legal medical marijuana sales began in July 2015.
Those figures come from annual financial audits obtained this week by The AP through an open records request. It highlights the financial difficulty of running a medical marijuana business in the state's tightly regulated program.
Minnesota Medical Solutions chief executive Kyle Kingsley says he expected to incur losses at the start. He cites high start-up costs and low patient count for the losses, and says they should turn around.