New Mexico cannabis industry leaders ask Governor to pause issuing of new licenses

LAS CRUCES, New Mexico (KVIA) -- 62 leaders of the cannabis industry in New Mexico have signed a letter asking the state to stop issuing new cannabis production and sales licenses, at least for now. ABC-7 obtained that letter from our news partners at KOB in Albuquerque.

The letter states the industry is "currently experiencing extreme instability" since rapidly growing after legislation legalizing the industry passed in 2021.

The letter argues the industry "is competing with a long-established illicit market which is flourishing due to a lack of resources for compliance, enforcement, and established consequences to deter individuals and organizations from participating in illegal cannabis activities."

The leaders later ask for the Cannabis Control Division to come up with a mechanism to "pause new cannabis licensees, and provide regulators with a safety valve to turn the application acceptance process back on when the regulated market has stabilized and has proper resources to ensure compliance for all operators."

The letter states over 1,000 retail licensees have been issued by the state since sales began back in April 2022.

Industry leaders argue that the opening of new retail is expanding at a point where sales can't keep up, which they say isn't sustainable for business, and warn business in the industry will either shut their doors or start selling lower-priced products from illicit markets.

ABC-7 has reached out to Governor Michelle Lujan Grisham's office for a comment.

Some of the signees of the letter include the owners of R. Greenleaf, Everest Cannabis Co., High Noon Cannabis Co., Pecos Valley Production, and Purlife, all of which operate locations in the Borderland.