A decision by Washington state cannabis regulators to undo a policy limiting businesses or individuals to only one cannabis-production license is expected to encourage a rush of activity in the state.

Under the new change approved Wednesday by the Washington State Liquor and Cannabis Board (WSLCB), entities are now allowed to hold up to three licenses.

The updated policy could usher in a large amount of mergers and acquisitions among cannabis companies now entities can hold a greater number of licenses.

“It’s not only large companies that stand to benefit,” Daniel Shortt, a Seattle-based attorney who works for a cannabis-focused law firm, said. “When you think about the smaller companies, now you are going to have the ability to merge. It also gives some exit strategies for licensees [who] for whatever reason want to leave the industry.”

The WSLCB will not issue producer licenses to any new applicants, nor will its policies on canopy space change. Anyone who already holds a state producer’s license will be able to expand production by acquiring other licensed production businesses.

The date of the change has not yet been publicized, but a board representative indicated it would take effect after 30 days.