Two more marijuana MSOs enter Texas medical cannabis market

Key Takeaway

Texas regulators awarded three additional vertically integrated medical cannabis dispensary permits, with marijuana multistate operators snagging two of the three new licenses. The expansion brings Texas's restrictive Compassionate Use Program closer to meeting patient demand in the country's second-most-populous state, though the program remains limited to low-THC products for a narrow list of qualifying conditions. The new permits are significant because Texas permits are extremely valuable given the state's size and lack of a recreational program. MSOs have been positioning for eventual Texas adult-use legalization. For cannabis operators, the Texas medical expansion signals continued methodical program growth even without broader legalization.