Missouri cannabis operators exit LeafLink amid price hikes

Missouri’s cannabis industry is undergoing a significant transformation as dozens of operators cut ties with LeafLink, one of the nation’s largest wholesale cannabis platforms. The shift comes in response to sudden and dramatic pricing changes that have left many licensees re-evaluating the value of the services they use to manage supply chains, sales, and wholesale distribution.

Roughly one month ago, cannabis cultivators and manufacturers were notified of massive increases in service fees, with some citing jumps of 300% to as much as 2,000%, from LeafLink.

“We were looking at a 15x to 20x, a 1,500%-2,000% increase, because it depends on the size of your revenues,” said Howie Keum, CEO and Co-Founder of Local Cannabis/Calyx Peak. “You can’t just quadruple or 10x or 20x someone’s monthly bill and expect them to say, ‘Sure, thanks for the privilege.’ There was no outreach, no transition plan, just, a here you go, take it or leave it.”

“It felt like it was a cash grab, and people took it personally,” Keum said. “It wasn’t just about the money, it was about the way they went about it.”

LeafLink notified operators nationwide that they would see mandatory pricing changes. While those changes came with new features, many of the operators Greenway spoke with explained that the “features” were neither wanted, nor needed. But the mandatory pricing increases struck a nerve.

“What they offered wasn’t bad, it just wasn’t worth what they wanted to charge for it. The value proposition didn’t match the sticker price,” Keum said. “I told them, ‘They’re charging me more because we do more revenue? That’s not a partnership, that’s a tax,” Keum told Greenway

“What LeafLink failed to realize is that operators in Missouri, we care about the industry and prioritize managing our costs for our customers. We as industry participants in Missouri embrace this culture with one another,” Keum said. “It’s not like California or Colorado, where everyone is siloed. You had licensees who are competitors working as industry stewards with each other to find a solution that is in the best interest for the industry and the end consumer. That tells you something. There was unity and a sense of responsibility amongst the Missouri operators.”

The backlash has been swift. Within days of receiving notice of the pricing changes, many operators began communicating, leading to the coordination of a mass transition away from the LeafLink platform.

“People were willing to make a change quickly because of how abrupt it was,” Keum said. “It shocked the market into action.”

LeafLink, which acquired both cannabis banking solution Dama Financial and competitor Leaf Trade in 2024, has not publicly addressed the pushback and backlash, and did not respond to inquiries from Greenway.

However, several operators noted that after announcing plans to cancel, they were offered steep discounts to remain. In some cases, licensees were even able to maintain their previous pricing. But in each circumstance, those discounts came with contingencies and expiration dates.

“Ultimately, Missouri operators are resilient,” he added. “We just won’t get bullied into bad deals, and this was one of those moments where the market said no.”

As a result, many operators have migrated to alternative wholesale platform providers, with the most popular of those being Apex Trading, an Oregon-based wholesale software company with a presence in over 20 state markets. Apex had only one client in Missouri as recently as a few months ago. That has shifted dramatically in recent weeks.

Apex Trading seizes the moment

“We’ve had the right product at the right time,” said John Manlove, CEO and Co-Founder of Apex Trading. “Not only was it a great replacement for how they were using LeafLink today, we actually had improved features and functionality for a lower cost.”

Founded in 2018, Apex was built with a clear mission to empower sellers and buyers in the wholesale cannabis supply chain with flexible, intuitive tools that integrate directly into how businesses operate.

“We obsess over the client problem, not the solution,” Manlove said. “If you’re thinking about the shiny object or whatever that future solution could be, you’re not fixated on what the core problem is today.”

That approach has paid off. Apex has seen a rapid expansion across the Midwest and beyond.

“Missouri is one market that profoundly seems a lot more closer knit from an operator level than others,” Manlove said. “There’s a little more community, a little more ecosystem. When operators saw what we offered, it aligned with what they were already looking for.”

   

He said the company’s team, though small at just 12 employees, was built to be efficient, highly responsive, and deeply familiar with the cannabis space.

“Some of our first cohorts in Missouri have said the onboarding experience was smoother and quicker than with their previous provider,” Manlove said. “And the level of support they’re receiving is light years ahead of what they had before.”

Part of that is due to Apex’s pricing model. The company offers a flat monthly subscription, with no fees tied to order volume or gross merchandise value. The small business tier is $600 per month, and the enterprise tier is $1,200, with all integrations and tools included.

“We don’t charge by volume,” Manlove said. “If you do $25 million this year in GMV, we’re not charging you more. We want you to get the highest ROI possible.”

That flat-fee approach is especially attractive to operators preparing for future market shifts, including possible price compression, as Missouri’s market matures.

“It might be good to think about what the Missouri market could evolve to,” Manlove said. “In other states, by year four, you typically see 50% price compression. If that happens, can you still absorb those platform fees? That’s the question.”

Built by and for the cannabis industry

Manlove, who grew up in Missouri and graduated from Drury University in Springfield, said his team’s background in cannabis makes a difference.

“We don’t come from big tech. We don’t come from Wall Street. We’re cannabis people,” he said. “I fell in love with the plant in high school, and most of our team did too. We have a passion and a longing to see this industry succeed.”

That passion has guided how the platform is built and how clients are treated. Apex employees, including engineers, regularly tour facilities, sit in on onboarding calls, and work directly with clients to understand what matters most.

“We want our clients to love us emphatically,” Manlove said. “To get that, you have to deliver consistently, listen actively, and build tools that actually solve problems.”

With much of Missouri’s wholesale business now flowing through Apex, the company is focused on reinforcing its foundation, expanding support resources, and maintaining the efficiency that has helped it scale.

“We’re hiring to support the growth, but more importantly, we’re improving internal systems to make sure clients are getting what they need quickly and clearly,” Manlove said.

A new chapter in Missouri’s cannabis market

What started as a vendor pricing issue has grown into a reshaping of the state’s cannabis wholesale ecosystem. With operators aligned in pursuit of more transparent, service-driven technology, the LeafLink exodus marks more than a market correction. It reflects a maturation of Missouri’s cannabis business environment.

“Their entire value is the network. If half the network leaves, the platform collapses,” Keum said. “And that’s exactly what happened. People pulled out in waves.”

While the long-term consequences for LeafLink remain to be seen, Missouri’s operators have made it clear that relationships, responsiveness, and value are non-negotiable.

And for Apex, the timing couldn’t have been better.