The Summer of Cannabis Licensing Opportunities
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The Summer of 2024 is turning into the Summer of Cannabis Licensing Opportunities, with (1) the States of Delaware, Minnesota, and Ohio starting their first round of Adult-Use cannabis licensing, (2) the State of Kentucky starting its first round of Medical-Use cannabis licensing, and (3) the State of Maryland expected to open it’s 2nd round of Adult-Use cannabis licensing.
This will make the summer of 2024 probably the most active cannabis licensing period since pre-2020, creating a ton off opportunity for existing cannabis businesses to expand and new cannabis entrepreneurs to enter the world’s newest multi-billion dollar market.
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Kentucky
Beginning today, July 1st, Kentucky will start accepting license applications for its brand-new medical cannabis market. The Commonwealth’s plans are to hold a 60-day application period, which will close Aug 31st, 2024. Although it will be 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.
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.
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 now open, urgency is key—reach out now to a Global Go Application Director to learn more and assess whether a Kentucky Medical Cannabis License fits your investment strategy. 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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Ohio
On June 7th, 2024, Ohio’s Division of Cannabis Control (DCC) began its process for dual licensing current medical cannabis facilities for Adult-Use Sales. As of Thursday, June 27th, 47 Ohio medical marijuana dispensaries have received regulators' pre-approval for dual-use recreational sales, with Adult-Use expected to begin September 7th, 2024.In addition, current Ohio medical cannabis licensees will be able to apply for adult-use cannabis dispensaries sites as follows:
• Type 1 Medical Cannabis Cultivators can open up to 3 dispensary locations.
• Type 2 Medical Cannabis Cultivators can open up 1 dispensary location.
• Medical Cannabis Dispensaries can open up 1 additional dispensary locations.
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.
Please click below for further information and to sign up for updates.
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Minnesota
Starting June 24th and closing July 10th, 2024, the State of Minnesota’s Office of Cannabis Management (OCM) will open a social equity verification period for applicants looking to apply in the State’s social equity adult-use cannabis licensing round. Then, on July 24th, 2024, a19 day licensing period for pre-approved social equity applicants. This short timeline is meant to expedite the licensing process for social equity applicants by granting cannabis cultivators the ability to begin growing commercial crops later this year (once regulations are published and property is approved) as well as allow cannabis dispensaries to gain pre-approval to begin operations next January.
To be considered as a social-equity applicant, 65% of an applicant's "controlling ownership" must meet the criteria for social-equity status.
An applicant qualifies as a social equity applicant if the applicant is/was:
- Any military veteran or Member of the National Guard
- Emerging Farmer - Someone who has provided the majority of labor and management for a small farm for at least three years. The farm in question must have made less than $100,000 in annual sales in the previous year.
- They or an immediate family member were convicted of possessing or selling cannabis;
- has lived for five years in a neighborhood with high levels of social vulnerability as defined by the Centers for Disease Control here;
- A resident for at least five years of a neighborhood that experienced a disproportionately large amount of cannabis enforcement (as determined by the OCM in a forthcoming study); or
- A resident of at least five years of census tracts with where more than 20% of people are in poverty or on food stamps, or where the median income is less than 80% of the statewide or metro area
This is an amazing opportunity to hit the ground running, so any person interested in starting a cannabis company and who qualifies under a category above should consider applying. Consider reaching out and scheduling a call with Global Go today!
Please click below for further information and to sign up for updates.
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Maryland
While we wait any moment now for the official announcement from the Maryland Cannabis Administration to commence the 2nd round of adult-use cannabis licenses, there have been significant updates in the Maryland General Assembly and the MCA.
In the final week of June, the MCA held another lottery to award 31 new cannabis business licenses. This delay was a result of litigation in Talbot and Calvert counties, along with other licenses that have not yet been awarded as part of a social equity-focused round initiated earlier this year.
Earlier last month, the Maryland cannabis industry underwent significant changes that will impact both current and future licensed operators. The Maryland General Assembly introduced & approved pivotal legislative developments earlier this year, which are now in effect, including:
- Extending the capability of current license holders to provide delivery services until July 1, 2025.
- Ensuring that profit distribution in cannabis businesses corresponds directly to ownership percentages.
- Restricting county and municipal officials from imposing stricter zoning regulations on dispensaries compared to retail dealers like liquor stores.
- Establishing a new category of Cannabis Registrants, Cannabis Nurseries, authorized to supply immature plants to cannabis enterprises.
In addition to legislative changes, the Maryland Cannabis Administration (MCA) have had their emergency regulations approved, which will be in effect through Aug 30, 2024, and they include:
- Management agreements are considered a transfer of control if they grant a management company unilateral authority to make major marketing, production, and financial decisions.
- Licensees can transfer equity without MCA review and approval if the transfer is for less than 5%.
- Conditional license holders must demonstrate adequate funds within six months of receiving their conditional license.
- Licensees may issue employee stock options as part of an employee compensation plan.
Please click below for further information and to sign up for updates.
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Delaware
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.
The opportunity to secure an adult-use Cannabis license in Delaware though is quickly approaching. Beginning in September 2024, 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 for September, there are some important developments to watch for, including the release of the final draft of regulations. On July 11th, the Office of the Marijuana Commissioner will unveil comprehensive regulations governing Delaware's adult-use cannabis industry. Earlier, in late June, the OMC introduced a map tool enabling residents to determine if they live in areas disproportionately impacted by marijuana arrests and convictions, which can be found here. Prospective social equity applicants are required to submit a validation form by July 15th to determine their eligibility for a social equity license. Meanwhile, the state legislature is still debating a various number of bills regarding cannabis regulations and schedules.
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.
Please click below for further information and to sign up for updates.
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About Global Go
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.
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