Growing pains for California's nascent cannabis industry

Some dispensaries, like the Apothecarium in San Francisco, have had sales soar since Prop. 64. But others are suffering.

But because taxes are so high, many users are avoiding the licensed dispensaries and finding pot on the black market instead. The Berkeley Patients Group's Sabrina Fendrick said she's noticed a drop in customers because of the new prices that come with legalization: Recreational cannabis can be marked up as 40 percent.

Watch Alex Savidge's story above to understand the growing pains of the nascent cannabis industry.