Hello! I am interested in starting a cartridge company in a state that is not yet legal yet. There is talk of my state turning the corner and becoming legal any day now. While I am waiting for this, I have got my mixtures down well for cartridges and have a quality product I feel confident would do well. Does anyone have any advice or guidance on what paperwork I need to fill out or hoops I should start jumping through to be ready?
Also, can a company just make cartridges and not have their own lab made product? I would ideally get product from out-of-house and just test the products sent to me before turning it into the final store-ready cartridge.
Thanks in advance!
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Hey Rex,
Is the state even medically legal yet? Regardless, there are probably people prepping for legalization just like you are. If you do not want to go through all the licensing, you could manufacture a product through a co-packer or contract manufacturer who holds all the licenses. The margins are lower because you will pay a premium for your product, but the barrier to entry is much, much lower. Some contract manufactures will allow you to provide them with your own extracts (from legal sources of course) and some will have extracts in house for you to use. You will usually have to plan your packaging design on your own, and the contract manufacturer will fill and package your carts for distribution. It is wise to have a sales team in addition to any local distributor to ensure success of the sales of your product.
Some manufactures will be able to formulate a product for you. If you’re looking to make a distillate cart, you will need distillate and terps. Cannabis terps are wonderful but can be very expensive and inconsistent. Botanical terpenes like us at True Terpenes offer are a good option for consistency and availability in every state as they can be legally shipped anywhere. Making a mix of cannabis and botanical terpenes is a good option too, to create more consistency with that added unique flavor.
Its hard to give licensing help because each state varies so much, but its a good start to go to your city hall meetings once it becomes legal and see what they are cooking up so you can understand the laws and guidelines that are being set in your area.
Get on fb and start looking for groups that pertain to legalization issues and updates around your area… usually the guys up at the Capitol fighting for better laws are online looking for supporters… where you may not care to rally and support when and where they do you may be able to find many answers to the questions you seek… or get a lawyer that studies cannabis law in your state…
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The state is medically legal but there are no dispenaries up yet. I have never really considered the idea of a co-packer or contract manufacturer holding the licenses. These options seem like a great idea to get started and maybe consider something more personal and on a larger scale later on. Do you know if most states require you to find a manufacturer/co-packer in state or if its usually open market to use a company wherever you want within the states?
I have just repurchased some terpenes from True Terps the other day, you guys have a great product and I appreciate the customer service (this included) 
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Hey Rex,
Thanks for the kind words! We are all about our “True Grade” level of service, which includes education, support, and our amazing, trusted products. I’m glad you feel the love!
One day America will be able to do state to state transactions of cannabis but for now, it is very illegal to cross state lines with product. Every plant grown and extracted must be sold and consumed within its own state and transported via licensed transport companies and distributors. Each state is different, and some can still operate in a grey area for transport and operations. Most of the fully legal states have heavy regulations and taxes though.
It’s great to hear that your state is medically legal! That means that there are resources for you already with manufacturers in your state, however few or many there might be. If your question was more about operating in a different state, and not about transporting into your state, a contract manufacturer is the way to go if you have the infrastructure to start the company in a different state. (product still has to stay in that state but you can get manufactures within most of the medical and legal states you desire.) It’s generally advised to start in your state and expand with your model and brand, rather than starting away from home in a potentially more saturated legal market.
Ask around about the different medical manufacturers in your state through any patients you know, and once you make contact, make sure to come to the table with a well thought out plan. Manufacturers are there to produce and package your product, not to create a brand or business plan. Some manufactures can help with formulations though if you already have a general idea. The cartridge business is tough, but if you are one of the first to market within your state with a solid game plan, you have a better chance than someone entering into an already saturated legal market.
We would suggest getting knowledgable about what it takes to get licensed within your county/city and state while exploring your start with contract manufacturing to get the ball rolling. =)