Emerging State Cannabis Markets: What to WatchEmerging State Cannabis Markets: What to Watch
Cannabis Market Updates!
Back to School and Back to Business:
Exciting End-of-Summer Cannabis Licensing Opportunities
As we start to approach the end of Summer 2024, there is still plenty of excitement and development in the cannabis industry to look forward to. The states of Delaware, Minnesota, Ohio, and the territory of the US Virgin Islands are starting their first round of Adult-Use cannabis licensing. The Commonwealth of Kentucky has begun its first round of Medical cannabis licensing. In California, the city of West Sacramento will launch its inaugural round of cannabis retail licensing within its city limits. Meanwhile, New Jersey's new licenses have garnered very little attention, creating more lucrative opportunities for traditional businesses looking to enter the cannabis industry.
The industry is in the midst of an exceptionally busy and dynamic period, making this one of the most active cannabis licensing periods since pre-2020.This creates a wealth of opportunities for existing cannabis businesses to expand and new cannabis entrepreneurs to enter the world’s newest multi-billion-dollar market.
Kentucky
With under 30 days remaining, Kentucky’s medical cannabis license portal has received applications for only 30% of its total available licenses. Looking like a much less competitive process than originally expected, there have been only 23 total applications submitted across all license types throughout July, with a significant number of those already disqualified for deficiencies. The Commonwealth’s 60-day application period will close soon on Aug 31st, 2024, at which time 74 total licenses will be issued.
Further increasing people’s chances is the fact that many of those already submitted applications have been rejected due to deficiencies. Among those applications were:
16 Dispensary applications (48 available)
5 Cultivation applications (16 available)
3 Tier-1
1 Tier-2
1 Tier-3
2 Processor applications (10 available)
Entering the limited license market in the Bluegrass State early allows operators to build a solid foundation and gain a significant first-mover advantage in terms of brand recognition, customer loyalty, and operational efficiency. Although it is a lottery-based process, an applicant must have property when applying. This involves specifying the intended site for the cannabis business, providing evidence of site ownership or leasing, and presenting a detailed layout plan for the proposed establishment.
Available initial licenses include:
Tier I Cultivator (2,500 sq. ft.)
Tier II Cultivator (10,000 sq. ft.)
Tier III Cultivator (25,000 sq. ft.)
Dispensary
Processor
Safety Compliance Facility
With the licensing process closing at the end of the month, urgency is key—reach out now to a Global Go to learn more and assess whether a Kentucky Medical Cannabis License fits your investment strategy. Applicants should seek third-party help and not wait until the last minute to ensure their applications are thorough and competitive. There is still plenty of time to submit a winning application, but don’t miss out on the opportunity to lead in this new industry—seize the first-mover advantage and secure your place at the forefront of Kentucky’s medical cannabis market.
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Delaware In less than one month from today, September 1st, Delaware will open the application window for its inaugural adult-use cannabis licensing round. For entrepreneurs and investors eager to seize first-mover advantage in the rapidly expanding Mid-Atlantic cannabis market, Delaware's Adult-Use Cannabis market presents an unparalleled opportunity.
Beginning next month, the inaugural first round of adult-use cannabis applications will be accepted for several key license types:
Retail
Cultivation
Manufacturing
Laboratory Testing
While we wait to get done with August, there are some important rescheduled dates to watch for, including the release of the final draft of regulations. On September 1st, the Office of the Marijuana Commissioner will unveil comprehensive regulations governing Delaware's adult-use cannabis industry. This was originally scheduled to be in July. Additionally, all prospective social equity applicants were required to submit a validation form by July 15th to determine their eligibility for a social equity license. For those eager to gain a competitive edge, now is the perfect time to start preparing your application. Improve your chances of success by contacting a Global Go Cannabis Application Director today, including team members familiar with the Delaware Valley, to gain invaluable insights into Delaware's market.
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New Jersey
New Jersey is turning into one of the largest and most lucrative cannabis markets in the nation, with sales reaching $201 million dollars in the first quarter of 2024 alone! That is a 38% increase compared to the first quarter of 2023, and the state reportedly added another $4 million in sales in a single day last April (4/20/24). With that kind of market performance, interest in the State’s adult-use cannabis industry has only continued to grow.
Since late March, Adult-Use Cannabis Delivery, Distribution, and Wholesaler license applications have been available to all prospective applicants. What’s been surprising, however, is that only a single one of these license types (distribution) has been issued. This is despite the fact that the Wholesaler's license, which allows you to purchase product at shole sale to re-sell to others, is very similar to a white labeling manufacturing business model, which is very common in traditional industries. This is an amazing opportunity for entrepreneurs from traditional business backgrounds, as these particular licenses lean into more traditional business models and skill sets rather than those specific to the cannabis industry.
Please reach out to Global Go to learn more about opportunities in this exciting market.
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Minnesota
Beginning in late July, the Minnesota Office of Cannabis Management (OCM) have begun to accept license applications for the state’s inaugural adult-use cannabis licensing round. The application period will remain open for one more week, closing on August 12th, 2024. However, only individuals who were pre-validated by July 10th are eligible to apply. The application process is quite detailed and complex, especially given the lottery system involved.
Given the complexity of the application process, Global Go is available to assist you in submitting a complete application. Pre-validated applicants shouldn't hesitate; this is a rare opportunity to be at the forefront of an exciting new industry and to shape its future in Minnesota. With time of the essence, we are here to answer all of your questions and concerns. Consider reaching out and scheduling a call with Global Go today!
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California
The City of West Sacramento will soon issue their formal solicitation for potential retail cannabis licenses, starting with social equity applicants. This solicitation will be specifically for storefront retail and non-storefront/delivery licenses. To qualify as an equity applicant, the primary owner must not exceed the area median income for Sacramento and Yolo Counties. Verified equity applicants will undergo a rigorous scoring process, with those achieving a minimum score of 90% being invited for an interview. The combined results of the interview and the application scoring will determine which applicants the City will invite to submit a formal application for a development agreement and a subsequent City cannabis license. Another round of applications will commence in 2025, open to all applicants, not just those qualifying under social equity criteria.
All interested parties are encouraged to reach out to Global Go to determine whether a Retail Cannabis License in West Sacramento aligns with your investment goals. With the Oakland Athletics of the MLB set to call the city home for at least three seasons starting next year, West Sac is set to experience a surge in excitement and development, boosting its profile as a vibrant destination for cannabis businesses.
U.S. Virgin Islands
Since the decriminalization of cannabis in 2014, the US Virgin Islands (USVI) has been slowly advancing towards creating an adult-use cannabis industry. Governor Albert Bryan's approval in May 2024 has set the stage for the industry to launch later this year in November, coinciding with a surge in tourism.
The licensing structure for the cannabis industry in the USVI will focus on issuing licenses across the main islands:
St. Croix
St. John
St. Thomas
Each island will have a specific number of cultivation and dispensary licenses, with additional licenses available for manufacturing, testing, research and development, and micro-cultivation. The application process is merit-based, requiring applicants to be USVI residents and own a majority stake in their businesses. Successful applicants will receive conditional licenses, allowing them to produce and sell both medical and adult-use cannabis products. With tourist arrivals at an all-time high—2.4 million in 2023 and 1.2 million as of July 1st, 2024—and a recent $69 million commitment from the US government, this is the perfect time for the launch, bringing unprecedented economic opportunities to the island.
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Ohio
Starting this week, adult-use sales will begin in Ohio. Last Friday, the Division of Cannabis Control (DCC) announced its plan to issue the first dual-use operation licenses to dispensaries on Tuesday. This follows the agency's recent preliminary approval for medical marijuana dispensaries, growers, and processors seeking to join the adult-use market. As of the end of July, the DCC has issued 66 of 86 dual-use licensees that applied for permits in cultivation, processing, & testing laboratories. The DCC will then be tasked with issuing an additional 40 adult-use cultivator licenses and 50 adult-use retailer licenses to new licensees, with a preference for applicants who participate in the cannabis social equity and jobs program.
With a projected $2 billion dollar adult-use market by 2028, converting to a dual licensed facility and getting additional licenses is a major opportunity for existing medical operators. Global Go specializes in cannabis licensing and applications (99% win-rate in hundreds of applications), training, compliance automation, advanced analytics, SOPs, mergers and acquisitions, new product launches, technology, security, and best practices. Enhance your prospects for success by reaching out to a Global Go Cannabis Application Director and accessing invaluable Ohio application insights today.
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Global Go LLC provides sophisticated consulting services to the global cannabis and hemp industry. Powered by our technology platform, team of cannabis industry pioneers and world-class consultants, Global Go helps leading cannabis businesses evolve and succeed. We support government regulators, financial institutions, Tribal Nations, and licensed cannabis operators. Global Go specializes in cannabis licensing and applications (99% success-rate over hundreds of applications), compliance automation, inventory, SOPs, mergers and acquisitions, strategic planning, new product launches, technology, security, and best practices. Learn more at https://globalgo.consulting.
