Metrc and BioTrack, the two dominant providers of seed-to-sale (STS) digital platforms for legal cannabis markets, have joined forces. But the companies say they are not merging.
BioTrack, a Fort Lauderdale, Fla.-based company acquired by Alleaves in 2023, will continue to focus on business-facing software such as enterprise resource planning and point-of-sale, while its government contracts will shift over to BT Government, a new company under Metrc Inc., the parent company of Lakeland, Fla.-based Metrc LLC.
“This partnership reflects our shared commitment to strengthening the cannabis industry through innovation, transparency, and regulatory integrity,” said Metrc CEO Michael Johnson in an Aug. 5 statement. “By working together, we can uphold consistency for state programs while BioTrack accelerates its investment in commercial technology.”
“We’re excited to partner with Metrc to deliver robust compliance solutions to state regulators,” added Moe Afaneh, general manager of BT Government. “At the same time, BioTrack is doubling down on its commercial offerings, bringing new innovations to ERP and POS systems that empower cannabis businesses to thrive.”
In addition to serving as general manager for BT Government, BioTrack still lists Afaneh as its chief operating officer.
“We are committed to ensuring continuity in every state program, maintaining transparent, secure and reliable supply chains that benefit regulators, licensees and ultimately consumers,” said a Metrc spokesperson in an emailed statement.
STS partnership dominates state cannabis markets
The partnership positions Metrc and BT Government to become the leading providers of STS government contracts as speculations persist about cannabis possibly being rescheduled. However, the company says rescheduling would not likely bring any dramatic change to work it does in each state market.
“As it relates to the compliance infrastructure across cannabis supply chains, rescheduling would only have a marginal impact, as regulations are still largely up to the states,” said the Metrc spokesperson. “Metrc will continue to closely monitor federal and state policies to ensure our business partners across the country can easily adapt to any changes.”
A source from Metrc was specific in saying this was not a merger. While owned by the same parent company, Metrc LLC and BT Government will continue to operate independently, for now. But it is possible that more states will come under the Metrc umbrella once their contract with BioTrack – and now BT Government – expires.
It is still not clear how this partnership will affect existing state contracts, but New York’s Office of Cannabis Management (OCM) announced on Aug. 5 that it was temporarily suspending its deadline for licensees in the state to implement BioTrack.
“OCM must evaluate systems implications for both the agency and licensees and determine the extent to which this development affects STS integration in New York,” said OCM’s notice. “To make a full assessment, OCM is temporarily suspending the deadline by which cultivators and other licensees must integrate, so that OCM can determine systems implications and communicate next steps to all licensees.”
A key difference between Metrc’s and BioTrack’s technologies is RFID tags. State contracts typically include a requirement for operators to use RFID tags to track their plants. In some cases, this requirement has left Metrc as the only option for states.
Colorado’s auditor challenged Metrc’s no-bid contract in 2023. The company was originally selected in 2011 to build a track and trace system for the state’s medical market. In 2018, the state granted the company a new contract, foregoing an open bidding process. At the time, the state claimed that Metrc’s proprietary RFID tag system was the only one that fit the requirements for the contract.
The Oklahoma Medical Marijuana Authority also updated its track and trace regulations, replacing “RFID” with the more broad “inventory tracking system.” OMMA has been under contract with Metrc since 2020 with annual options to extend that deal into 2029.
At about the same time that Metrc was facing scrutiny for its state contracts, Alleaves acquired BioTrack and MJ Freeway, Metrc’s two significant competitors. BioTrack has contracts with nine states, while MJ Freeway has a contract with Pennsylvania.
The new BT Government will take over contracts in Arkansas, Connecticut, Delaware, Hawaii, Florida, New Hampshire, New Mexico, New York and North Dakota.
Metrc currently has contracts with 24 states, including Alabama, Alaska, California, Colorado, Illinois, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Jersey, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Virginia and West Virginia. The company also has contracts with Washington D.C., the U.S. Virgin Islands and Guam.
Utah’s medical market has a contract with Leaf Data Systems, which is owned by Alleaves along with MJ Freeway. Washington’s adult-use market uses a track and trace system developed by the state, while Vermont and Arizona require track and trace but do not have state contracts with a specific third-party provider.
