Metrc Inc. has taken over government contracts from BioTrack, consolidating control over seed-to-sale tracking systems across most U.S. legal cannabis markets. The companies, both now under the same parent structure, insist this partnership stops short of a full merger, with BioTrack refocusing on commercial software. This move promises continuity for regulators while raising questions about competition and state compliance timelines.
Partnership Splits Government and Business Roles
BioTrack, based in Fort Lauderdale, Florida, and acquired by Alleaves in 2023, hands its state contracts to BT Government, a new Metrc subsidiary. BT Government general manager Moe Afaneh, who also serves as BioTrack's chief operating officer, emphasized robust compliance solutions for regulators. Metrc CEO Michael Johnson described the arrangement as a commitment to innovation, transparency, and regulatory integrity in an August 5 statement.
BioTrack will concentrate on enterprise resource planning and point-of-sale systems for cannabis businesses. Metrc, headquartered in Lakeland, Florida, maintains its operations separately for now. A Metrc spokesperson affirmed dedication to secure supply chains that serve regulators, licensees, and consumers.
Dominance Grows Amid Expanding State Contracts
BT Government inherits BioTrack's contracts in nine states: Arkansas, Connecticut, Delaware, Hawaii, Florida, New Hampshire, New Mexico, New York, and North Dakota. Metrc already holds contracts in 24 states, including California, Colorado, Illinois, Michigan, New Jersey, Ohio, and Oregon, plus Washington D.C., the U.S. Virgin Islands, and Guam. This positions the combined entity to oversee tracking in the vast majority of legal cannabis markets.
- Alleaves also owns MJ Freeway, which serves Pennsylvania, and Leaf Data Systems for Utah's medical market.
- Washington state runs its own adult-use tracking system, while Vermont and Arizona mandate tracking without third-party contracts.
The shift follows Alleaves' acquisition of BioTrack and MJ Freeway, Metrc's key rivals, around the time Metrc faced scrutiny over state deals.
RFID Requirements and Contract Controversies Shape Landscape
Seed-to-sale platforms track cannabis from cultivation to sale using technologies like RFID tags, often mandated by states. Colorado's 2023 audit questioned Metrc's no-bid renewal from 2018, originally awarded in 2011, due to its proprietary RFID system meeting unique requirements. Oklahoma's Medical Marijuana Authority switched from "RFID" to "inventory tracking system" in regulations after contracting with Metrc in 2020, with extensions possible to 2029.
Rescheduling Speculation Meets State-Driven Realities
New York's Office of Cannabis Management suspended its BioTrack integration deadline on August 5 to assess impacts on agency and licensee systems. A Metrc spokesperson stated rescheduling cannabis federally would have marginal effects, as states control most regulations. The company plans to monitor policy changes to help partners adapt.
Sources confirm no merger, though expiring contracts could draw more states to Metrc. This consolidation strengthens tracking uniformity but invites oversight on vendor dominance in a rapidly evolving industry.
