Pharmacist Steve Rosenfeldt’s Rosebuds Cannabis Company has added cannabis flower to its stock of hemp-based THC and CBD products.
Nancy Edmonds Hanson
The fledgling cannabis industry is evolving, says Steve Rosenfeldt, both in Minnesota and nationwide … and there’s much more to come.
Rosenfeldt, who earned a doctorate in pharmacy at North Dakota State University, is the proprietor of the shop now called Rosebuds Cannabis Dispensary. Formerly known as Ediblez Etc and Adeline’s Apothecary, the business is located on Highway 10 in the building that once housed Duane’s Pizza.
His nearly four-year-old store originally sold THC and CBD beverages, edibles and similar products. He added cannabis seeds, growing media and equipment in 2023 when the state legalized private cultivation, teaching classes and encouraging residents who now could grow their own.
But the long-awaited sale of cannabis itself has taken off only this month, when Rosebuds and Unwind, the second state-licensed, locally owned seller, finally received their first product. Though state-approved, inspected and ready to go, both waited for months for the product they’d ordered to be delivered. That was largely because of the Office of Cannabis Management rule that all cannabis products sold in the state must be tested by Minnesota labs. Only three originally met the requirement. The bottleneck has eased to some degree now with the addition of two more qualifying labs.
“We received our first shipment at 3 o’clock last Wednesday,” Rosenfeldt reports. By the end of that day, he says, his four-year-old shop on Highway 10 had recorded its best day in the 12 months since the city’s first cannabis dispensary, the White Earth Tribe’s Waabigwan Mashkiki, opened.
For now, the dispensaries carry only a few kinds of products, all grown, tested and manufactured in Minnesota – cannabis flower, pre-rolls and vape carts. New offerings may be added as the state’s roster of growers and processors develops.
Exactly how the industry will expand, however, may be unpredictable. April’s presidential executive order covering medical cannabis has opened the door to wider research and development. The order moved marijuana from Schedule I to Schedule III under the Controlled Substances Act. That shifted it from the category of drugs with “no accepted medical use” to a less restrictive one for substances of “accepted medical use” with moderate/low dependency risk.
The change eases research barriers, allowing tax deductions for cannabis businesses and recognizing state-licensed medical marijuana.
Industry watchers anticipate the order eventually broadening to include recreational (non-medical) marijuana. That change at the federal level, says Rosenfeldt, is likely to ease some of the obstacles that now face pioneering cannabis operations like his.
One of the biggest challenges still lies in interstate commerce. At the moment, Minnesota shops can only sell products that originate within the state. Until now, that Schedule I designation forbade movement of cannabis across state lines. That may change now. Meanwhile, licensing Minnesota growers and producers has been increasing the in-state supply.
The Schedule I designation has made banking a big problem. “As soon as we got our license and product, the banking system was off limits,” he says. That means that shops can accept only cash; credit and debit cards and checks are off limits. Insurance, too, is very expensive.
Credit unions have offered an alternative, but with restrictions. “We can’t bring our own cash receipts in for deposit. Money must be transferred by armored car services like Brink’s.” That’s true for cannabis products as well. He points to the shipment received last week: “The shipping charge was $700 for an order that could have fit in a tote bag.
Meanwhile, there’s a bit of good news for the locally owned dispensaries. Though licensed, inspected and ready to go, both waited for months for the product they’d ordered to be delivered. That was largely because of the Office of Cannabis Management rule that all cannabis products sold in the state must be tested by Minnesota labs. Only three originally met the requirement. The bottleneck has eased to some degree now with the addition of two more qualifying labs.
“Those are just a few of the reasons prices are so high right now,” Rosenfeldt explains. “That’s always the case, though, with an industry that’s just starting up.”
His Rosebuds is one of four dispensaries currently licensed to do business in Moorhead. The second locally owned business is Unwind, located on Eighth Street South. Both were among the earliest THC licensees in the state; both, too, sought and received licenses for recreational cannabis sales. Both companies plan to grow their own product to insure its quality and access. Rosenfeldt expects to add Rosebuds-grown cannabis to his inventory in the fall.
Green Goods, which opened as a medical marijuana dispensary in 2015, has added recreational cannabis; since the company was growing and supplying its own 15 locations with medically approved products, the new store in the former First International Bank building on 30th Avenue South acquired its stock through its own channels. The newest licensed dispensary, Beezwax, also operates THC sales locations near its Main Avenue store and near the EasTen Mall. (The tribally owned store on Highway 10 is not required to be licensed by the city.)
More stores are apparently on the way, according to Rosenfeldt and Moorhead city planning director Robin Huston. She says her office “has talked to hundreds of people” about the potential for operating here, attracted by the city’s proximity to North Dakota and access to I-94 and I-29. Few have followed through so far to obtain the local zoning and retail permits necessary. A number of properties have been purchased, however, apparently in hopes of securing a state license before doing the local paperwork.
Rosenfeldt has added extensive security upgrades to his location next to the Midtown Tavern. Customers have to request admittance to be buzzed inside. He has installed 11 cameras to record activity in every corner of his shop. All who purchase products must provide a photo ID, which is scanned to insure authenticity. That’s enabled him to calculate the average age of those who are buying his products. It’s 56.
The sale of cannabis is something of a crusade for the entrepreneur. After graduating from NDSU with a doctorate in pharmacy in 2013, he worked at Altru Hospital in Grand Forks. But personal tragedy derailed his plans. In 2017, he and wife Jade Rosenfeldt lost their infant daughter, Adeline.
“We lost our daughter, and I lost my mind,” he says. “For the next three years, I struggled. I was in and out of treatment three times.” Medications were prescribed, but all failed to help.
“The turning point was when I tried medical cannabis,” Rosenfeldt asserts. “I was able to get off all the prescription meds. That’s when I started to make progress and, finally, to heal.”
Drawing on his own experience, he describes cannabis as a safer alternative to alcohol. “People are always looking for something to take the edge of. This is inherently less consequential to the user. It doesn’t alter your personality. It’s gentle on the body. You don’t feel wrecked the next day.
“All of that is why I wanted to get into this industry. It saved my life. I want to pay it forward.”