Hollywood is on its way to becoming Hollyweed: The city of Lynwood is the first in Los Angeles County to start negotiating with licensees who would grow, manufacture and deliver pot.
As the most populous county in the most populous state, Los Angeles is a major play as the cannabis industry gains a wider ability to sell the drug for recreational use. Voters in California — along with those in Nevada, Maine and Massachusetts — legalized it in November. The $6 billion U.S. industry is expected to reach $50 billion by 2026, according to investment bank Cowen & Co.
Lynwood is kick-starting the momentum. Its city council this week granted preliminary approval to 13 applicants for commercial cannabis cultivation and manufacturing, according to a statement from the mayor. The groups each must negotiate individually with Lynwood on terms and conditions for their operations, and must demonstrate clean backgrounds and financial security.