Most of the local governments in the state have banned commercial cannabis, and many of the jurisdictions that welcome the industry have strict caps on the number of licenses issued.
And previous rounds of cannabis company licensing in the city resulted in only six of the nearly 200 medical marijuana retailers being operated by Black entrepreneurs, according to Virgil Grant of the California Minority Alliance.
The company’s signature strain Pluto has been mentioned on more than one hip-hop track, and fresh drops of the latest harvest have sold out in minutes at high-profile dispensaries.
When nightclub and entertainment industry veteran Felix, an Alcorn State University alumnus and graduate of the HBCU’s business school, got his hands on some of Kingston’s herb through a mutual friend, he set up a meeting that would change both of their lives.
Connecting on a fishing trip, Felix and Kingston began to make plans to bring the illicit cultivation operation out of the shadows and into the regulated arena.
After settling on the name GasHouse to honor Kingston’s proprietary strains of weed with pungent aromas reminiscent of diesel fuel and spice, the pair set to create their image.
On an exploratory trip to the state, they connected with a resident looking to sell 40 acres of his property in rural southern Oregon.
The prospective seller intended to stay on his remaining 100 acres, so he was eager to know what plans were in store for the parcel of land that was for sale.
Oregon had legalized medical marijuana back in 1998, so they set their sights on gaining licensure as medicinal cannabis cultivators under that regulatory regime.
Although the environment was different, he relied on his experience and commitment to grow clean cannabis without pesticides or synthetic fertilizers to guide his operation.
Kingston says he wasn’t expecting to win any awards and was surprised to learn that public cannabis competitions even existed.
The state’s voters had legalized recreational marijuana two years earlier, and the onset of legal adult-use sales marked the creation of the largest regulated cannabis market in the world.
“We recognized California had 40 million people, and Oregon had four or five million people,” says Felix.
Like the first time, Felix and Kingston decided to forego the services of expensive consultants in the quest for a license in California.
“We understood the system.
Demand for GasHouse cannabis flower and concentrates continues to grow, and the company’s products command top-shelf prices at the exclusive list of dispensaries that carry them, including the Cookies chain from co-founder and hip-hop artist Berner.
Because the federal prohibition on cannabis precludes products from crossing state lines, the company has agreements with cultivators in four states to produce cannabis featuring Kingston’s GasHouse genetics to their local markets.
Because of the success of their brand, which Felix and Kingston conservatively value at approximately $60 million with the recent addition of hemp CBD products to the GasHouse portfolio, the partners find themselves in the position to give back to their community.
I’m going to do everything I can in my power to see them win and to empower them to be the best that they can be.
When me and Kingston first started, yeah, it took a little capital, but nothing compared to now,” says Felix.
The social equity program in Los Angeles is being rolled out in fits and starts, and no licenses have yet been issued to applicants, many of whom have been paying rent on empty storefronts for years as they wait.
In addition to the red tape of social equity programs, Kingston says they do not address the needs of the entrepreneurs they are designed to support once they’ve been licensed.
It just needs to be ran correctly,” Felix says.
I’ve documented stories about legalization and the cannabis industry in my home state of California, the nation’s largest legal marijuana market, and beyond, receiving input in the process from a host of sources including C-suite executives, congressmen, illicit cultivators, and sack slingers.