Licensing Leaves Are Changing: What’s New in Cannabis as Fall Approaches
As we trade tank tops for flannels, the cannabis industry continues to buzz with excitement, offering abundant opportunities for growth and innovation. The summer of 2024 cannabis licensing was one of the most thrilling windows in recent memory, with a flurry of new developments and market expansions keeping the industry on its toes. As we move into fall, the momentum shows no signs of slowing, and it hopes to build on that success, driving further growth and opportunity within the industry.
In this issue, we will explore the exciting opportunities currently, or soon to be, available in Delaware, Maryland, Minnesota, and U.S. Virgin Islands. These state and island markets offer valuable opportunities for entering newer and emerging cannabis sectors. For the U.S. Virgin Islands, this could present a unique opportunity for entrepreneurs from Texas, where cannabis regulations remain restrictive, to enter the market and establish a foothold in the industry where many Texans frequently visit.
Delaware
There are now only 2 weeks left to submit your application for the inaugural licensing round for Delaware’s adult-use cannabis licensing. The state’s application submission portal will close on September 30th. There are opportunities available for general, social equity, and microbusiness applicants. If you did not participate in the pre-validation process for the social equity licenses in July, you can still apply for a Social Equity License. In the initial round, the Delaware Office of the Marijuana Commissioner (OMC) will issue the following license types:
To be eligible for submission into Delaware's lottery, applicants must adhere to specific guidelines and requirements to ensure that only the most well-prepared and compliant businesses receive licenses. Failure to complete required items will result in your application being rejected. The application process demands comprehensive details, with these essential items required for the Delaware application, including:
Capitalization Table
Comprehensive Business Plan
Environmental and Sustainability Plan
Operating Plan
Quality Assurance Plan
Safety, Security, and Product Diversion Prevention Plan
Staff and Employee Training Plan
Delaware Business License
Government-issued ID for the applicant &
Social Equity Verification Document (if applicable)
Global Go is here to guide you every step of the way, offering à la carte options from full application assistance to expert reviews of your self-completed application, ensuring you’re ready to secure your spot in the cannabis licensing lottery. Improve your chances of success by contacting a Global Go Cannabis Application Director today, including team members in the Delaware Valley, to gain invaluable insights into Delaware's market.
Maryland
Maryland earlier this summer completed its first round of cannabis licensing, with all winners required to be social equity applicants. The MCA is expected to announce the next round of its cannabis licensing at any moment now. This will be the first round of licensing that allows non-medical & non-social equity applicants to apply. That is especially attractive as the State’s current cannabis market is performing exceptionally well, having surpassed $1.1 billion in the first 12 months following legalization.
In this next round, the MCA may issue a maximum of the following number of licenses: Standard licenses:
• 25 grower licenses
• 25 processor licenses
• 120 dispensary licenses. Micro licenses:
• 70 grower licenses
• 70 processor licenses Other:
• 10 incubator space licenses
• 15 on-site consumption licenses
As we await the imminent announcement from the Maryland Cannabis Administration (MCA) regarding the commencement of the second round of adult-use cannabis licenses, significant updates have already shaped the landscape for operators in the state.
In June, the MCA approved emergency regulations that include:
Considering management agreements as a transfer of control if they grant unilateral authority to make significant marketing, production, and financial decisions.
Allowing licensees to transfer equity without MCA review and approval for transfers under 5%.
Requiring conditional license holders to demonstrate adequate funding within six months of receiving their conditional license.
Permitting licensees to issue employee stock options as part of their compensation plans.
Licensees who need assistance in perfecting their license and starting operations should reach out to Global Go, which is now officially designated on the State of Maryland’s Social Equity Conditional Licensee Technical Assistance Service Provider List.
Minnesota
Minnesota has just wrapped up its first round of cannabis licensing submissions for their social equity program, marking a significant milestone in the state’s cannabis journey. Applicants are now in a waiting period to see what the results will be from the lottery this fall. If chosen from the lottery, those winners will be issued temporary licenses, which are valid for 18 months. These temporary licenses will empower licensees to progress towards operational readiness by securing property, capital, and local building approvals, though holders will be prohibited from engaging in selling cannabis or executing any ownership changes that might affect control. We here at Global Go, with our extensive experience, will be there to guide you through these crucial steps, ensuring you successfully navigate those complexities while adhering to all regulatory requirements. The general license process will be announced soon as well. While we wait for this, the OCM recommends preparing your proposed business plan, security plan, and business capitalization table, as well as standard operating procedures for: quality assurance; inventory control, storage, and diversion prevention; and accounting and tax compliance. Enhance your prospects for success in the projected $1.5 billion Minnesota cannabis market by reaching out to a Global Go Cannabis Application Director and accessing invaluable insights from the Land of 10,000 Lakes today.
U.S. Virgin Islands Starting in less than 2 months, the US Virgin Islands (USVI) will begin to accept application submissions for its inaugural adult-use cannabis licensing round. The Virgin Islands Cannabis Regulations Office has been steadily working towards setting up their industry and have had significant progress in the past few weeks. Approval of the cannabis business license application process is expected to take place during the Cannabis Advisory Board’s September 17th meeting and be set to take off in November.
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 1.5 million as of June 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. Notably, Texas is the leading state from which their tourist visitors originate, with most coming from the cruise ships leaving Galveston.
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.
Anyone with interest in either a current adult-use licensed business, or who hopes to apply in the next application round, should reach out to Global Go today!
