Summer’s Last Hoorah: What’s New in Cannabis Licensing as Fall ApproachesThe summer of cannabis licensing has been one of the most thrilling windows in recent memory, with a flurry of new developments and market expansions
Cannabis Market Updates!
Summer’s Last Hoorah: What’s New in Cannabis Licensing as Fall Approaches
The summer of cannabis licensing has been 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 the fall, there's still plenty more to come, promising continued excitement and opportunities for growth.
While a couple of states (Kentucky and Ohio) wrapped up their most recent opportunities at the end of summer, the states of Delaware, Minnesota, and Maryland still have opportunities available. In California, the cities of West Sacramento and Santee will launch or open cannabis retail licensing rounds within their city limits. In Massachusetts, the state is set to soon be distributing more than $27 million in funds among social equity cannabis businesses. The U.S. Virgin Islands are set to launch their new adult-use cannabis licensing round later this year as well, offering a prime opportunity for entrepreneurs, especially those from Texas, which is the leading state from where USVI tourist visitors originate from (specifically the ports in Galveston).
These state, municipal, and island markets are still largely untouched with excellent first-mover opportunities. 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.
Delaware
Weeks ahead of schedule, the State of Delaware opened its application window for adult-use cannabis licensing early on Aug. 19th! This window will officially close at the end of September. Details on its application process can be learned from the State’s Office of the Marijuana Commissioner’s Facebook page, found here. There are opportunities available for both general and social equity applicants, although social equity applicants had to have been verified by July 15th. 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.
During this inaugural first round, adult-use cannabis applications will be accepted for several key license types:
Retail
Cultivation
Manufacturing
Laboratory Testing
These essential items are required for the Delaware application, including a:
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.
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. They are now in a waiting period to see what the results will be from the lottery. 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.
Interestingly, more than half of the social equity applicants aiming to be at the forefront of Minnesota’s cannabis market are from outside the state. The Office of Cannabis Management (OCM) received over 1,800 pre-applications this summer from across the country, with only 802—about 44%—coming from Minnesota residents.
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.
Maryland
Maryland earlier this summer completed its first round of cannabis licensing, with all winners required to be social equity applicants. 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.
In addition, the MCA is expected to announce the next round of its cannabis licensing. The next phase of Adult-Use cannabis licensing was tentatively scheduled to be announced earlier this summer, but there has been no official word yet. 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 sold $332 million in 2023, which is expected to double by the end of 2024 according to Maryland’s Department of Legislative Services fiscal analysis.
Kentucky As Kentucky's application deadline has passed, we're now in a waiting period to see who will be accepted into the lottery and what the results will be. The state experienced a significant influx of submissions in the final week, with over 2,650total applications. Dispensary licenses dominated the scene, accounting for over 2,200 of these submissions, while all other license types saw fewer than 100 application submissions each. Only 74 total licenses will be issued.
Despite the licensing closing at the end of August, there is still plenty of work for those successful lottery applicants that will need to be done. Reach out now to Global Go to learn more about how we can assist you with the next steps after the lottery, from navigating the setup process to ensuring you're fully prepared for success in the cannabis industry.
California
The City of West Sacramento began their formal solicitation for potential retail cannabis licenses in early August, starting with social equity applicants. This solicitation is specifically for storefront retail and non-storefront/delivery licenses and will end on September 16th. To qualify as an equity applicant, the applicants must have a household income ≤80% of Yolo or Sacramento County median income figures. 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.
The City of Santee, just east of San Diego, also anticipates accepting applications for cannabis retail permits at any moment now. This application process will be open for 45 days. Details on locations available for licensing can be found on the City’s map here. All interested parties are encouraged to reach out to Global Go to determine whether a Retail Cannabis License in either City aligns with your investment goals.
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 1.5 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.
Massachusetts
Earlier in August, the state fund designed to support entrepreneurs from communities most affected by cannabis prohibition now holds over $27 million. Plans are in progress to expand eligibility for state financial assistance to these social equity cannabis businesses.
A technical issue initially hindered the transfer of funds to the new trust fund until lawmakers revised the fiscal year 2023 closeout budget, which Governor Maura Healey signed in December. The fund received its first allocation of just over $2.3 million in December, followed by a complete annual transfer of $27,447,434 from the regulation fund on February 1, as detailed in the report.
The program will offer increased support to licensed social equity cannabis businesses facing operational or capital challenges. Additionally, eligibility will be extended to social equity applicants who are still in the process of entering the cannabis industry.
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!
