Please ensure Javascript is enabled for purposes of website accessibility

Utah Medical Pot Sales Begin

By Eric Volkman - Mar 2, 2020 at 10:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dragonfly Wellness makes history as the first business to sell cannabis legally in the state.

Another domino has fallen: Medical marijuana sales in Utah started on Monday, with the opening of the state's first dispensary. Dragonfly Wellness, located in the state's capital and largest municipality, Salt Lake City, opened its doors and sold product to become Utah's first legal marijuana retailer.

The Dragonfly Wellness outlet is the first of 14 dispensaries approved by the state in the opening stage of legalization. These were dispersed among four geographic regions.

Nearly all are operated by small, privately held businesses; two exceptions are Curaleaf (CURLF 1.37%) and Columbia Care (CCHWF 0.04%). The companies will operate one dispensary apiece in Region 3, which roughly covers the southeastern part of the state. Curaleaf's will be located in the city of Linden, while Columbia Care's is to care for its patients in Springville. Both municipalities are on Utah Lake, just south of Salt Lake City.

Generic marijuana dispensary sign.

Image source: Getty Images

The Utah Medical Cannabis Act passed into law in late 2018 through a ballot initiative that the state legislature later modified. Following that, it took some time for the state to award licenses to dispensary operators. Recreational marijuana sale and use in Utah remains illegal, unlike in neighboring Nevada and Colorado.

At the moment, the customer base for Dragonfly Wellness and peer marijuana companies is extremely limited, as the state has only recently started granting medical marijuana cards to qualifying patients. According to a report from Salt Lake City-based Fox 13, only 14 people had been approved for such permits as of Monday. 

Neither Curaleaf nor Columbia Care made any official comment on the launch of Utah's marijuana market. Both stocks fell slightly in price on Monday.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Curaleaf Holdings, Inc. Stock Quote
Curaleaf Holdings, Inc.
CURLF
$5.18 (1.37%) $0.07
Columbia Care Inc. Stock Quote
Columbia Care Inc.
CCHWF
$1.38 (0.04%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.