* We talked last week about vertically integrated cannabis companies with growing centers and retail outlets. A spokesperson for one such vertically integrated company claimed it had no product shortage problems at all while other retailers which didn’t also own growing centers were reporting shortages.

Well, yet another retailer with no growing license [Nope. Thanks to commenters for pointing out that this retailer is also vertical] has announced a temporary closure…

HCI Alternatives in Springfield will suspend recreational cannabis sales for the day on Monday. The dispensary at 628 E. Adams St. will remain open regular business hours Monday (9 a.m. to 8 p.m.) to serve medical cannabis patients. It based its decision on the need to replenish recreational use inventory and allow staff to recharge. HCI’s Collinsville dispensary is also suspending recreational sales Monday. Both dispensaries are expected to resume recreational use sales on Tuesday.

* The state has taken notice. From an email sent Friday by Bret Bender, the deputy director of the Illinois Department of Financial and Professional Regulation’s Cannabis Control Section…

Dear Licensees,



The Department has become aware that some adult use dispensaries have inventory from a single cultivator center entity in excess of the 40% limit mandated by the Cannabis Regulation and Tax Act (“Act”). 410 ILCS 705/15-70(p)(5). The Department is currently investigating the scope and extent of these potential violations. In addition, it has been reported that many dispensaries are experiencing a shortage of cannabis products, including products for medical cannabis patients. The Department takes seriously the availability of product for medical patients and dispensaries are required by law to prioritize providing products to medical cannabis patients.



Dispensaries in violation of the 40% limit must immediately remedy the problem and come into full compliance with the Act. In addition, the Department expects dispensaries to immediately take affirmative steps to avoid future violations of this requirement.



Any dispensary that had or currently has inventory exceeding the 40% limit is in violation of the Act and may face potential non-disciplinary or disciplinary action by the Department. Prompt remediation of this violation will be considered a mitigating factor regarding any discipline the Department may impose for these violations. Future or continued violations will be viewed by the Department as avoidable and intentional, and dealt with accordingly.

I do not like vertical integration in that industry. This was wholly predictable, even with state limits.