PharmaCann is preparing to close its cultivation facility in Dwight, marking another significant operational pullback the Illinois cannabis market has seen this year. According to reporting from Crain’s Chicago Business, the company disclosed the closure in a filing with the state, confirming that 82 employees will lose their jobs. The shutdown is expected to be complete by the end of the year.
This development highlights the financial strain many cannabis operators are experiencing. Wholesale prices continue to drop, competition across the state has intensified, and companies are battling higher borrowing costs with no federal reform on the horizon. The absence of progress on banking or tax relief has worn down investor confidence and left operators navigating a market that is becoming increasingly unforgiving.
PharmaCann, one of the original Illinois cannabis license holders, grew into a multi-state operation but never entered public markets. Crain’s reports that the company has spent close to a year in default on several leases connected to cultivation and retail properties owned by Innovative Industrial Properties. The real estate trust has initiated legal action to take back several locations, including the Dwight site.
There is no clear indication of whether another operator will step in to purchase the Dwight facility or its associated license. The Illinois Department of Agriculture told Crain’s it has not received any request for transfer or sale. This uncertainty is particularly notable given that early Illinois cultivation licenses were once considered some of the most valuable assets in the market due to their larger production limits.
Get a Flower Mill today
(Use code “MidwestDazed” to save)
Attorney Ryan Holz told Crain’s the situation in Dwight is unlikely to be an isolated event. He suggested that more major operators may face similar challenges if market conditions continue on the same trajectory.
This also raises a broader issue that many Illinois consumers and operators already recognize. With some of the highest cannabis taxes in the country, Illinois continues to push shoppers toward out-of-state markets or unregulated sellers. If the state reduced taxes on cannabis products, it could boost purchasing power for consumers and drive more sales to dispensaries that are struggling to stay afloat. Lower taxes would not only increase foot traffic for small and mid-sized operators, but also help stabilize the broader market during a period of financial contraction.
Couch Lock’d will continue to follow developments as new information becomes available.
Subscribe to our newsletter for the latest updates.
Stay in the loop with all things Illinois Cannabis by joining the Couch Lock’d Newsletter here!
Follow our NEW Instagram here!
Become a Couch Lock’d Member.
Want to meet more people in the community and see what everyone’s smoking on? Join our Telegram channel here.
Find our latest reviews here.
Hosting an event & need a consumption bar? Hit us up here.
Save money with our affiliate links here.
Get your Illinois Medical Card for $75 now with our link here or code “CouchLockd”!
COUCH LOCK’D 