AKRON, Ohio — Klutch Cannabis in Akron is gearing up for big changes with the recent passage of recreational marijuana, but those changes are contingent upon Republicans at the Statehouse.
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“We’re waiting to see what changes are made to it, if any, and we are also kind of waiting for a whole big rule package to be introduced and work its way through the system,” said Pete Nischt, Vice President of Compliance and Communication at Klutch Cannabis.
Nischt said the company is now waiting on plans to expand grow operations and retail stores. The company wants to get ahead of production before dispensaries can legally sell in late 2024.
“There’s a lot that needs to happen from now until the program is brought online,” Nischt added.
For instance, Klutch Cannabis is currently a Level 1 cultivator, which means the company can grow up to 25,000 square feet, however, the company recently got approved by the Department of Commerce to now grow up to 50,000 square feet. Since Issue 2 passed, they want more space.
“Our understanding is that Issue 2 would move this license class to 100,000 square feet,” said Nischt. “There are a lot of approvals that need to happen both locally and at the state before we can achieve that size, and I think a lot of it also depends on market demand and whether that makes sense for the company.”
How much demand is another big unknown. Lawmakers are considering changing the 10% tax rate and how it will be distributed, which Nischt fears could make marijuana too expensive for some customers.
“It will take time, I think, to capture more and more of that revenue and tax it, regulate it, and that sort of thing,” said Nischt. “Part of the state's ability to do that is going to depend on some policy decisions that are made here.”
Klutch Cannabis already has two medical storefronts in Lorian and Canton. Nischt said those locations will add on adult-use sales. The company is also working on building a third storefront in Summit County if local officials agree to it. Nischt said patient care will remain a top priority.
“I think at the time Klutch started as a medical marijuana company, that [recreational marijuana] was always on the horizon for us," said Nischt. "We’ve always had it in the back of our heads, but we were really focused on trying to execute to the best of our ability for our patients.”
