Last Chance Licensing Opportunity in the Most Lucrative Medical Cannabis Market in the US
Florida is the US’s largest and most lucrative medical only cannabis market with Brightfield Group expecting 25% growth in 2022 to $1.7 billion. Currently, this market is shared by only 22 licensed cannabis providers, and cannabis licenses in the state have sold for well over $50 million. So, the December 19th, 2022, issuance by the Office of Medical Marijuana Use (OMMU) of Emergency Rule 64ER22-9, which sets the stage for an ongoing and revolving “batching cycle” of new cannabis licenses, is a very big deal for cannabis investors and entrepreneurs.
Florida’s over 776,365 active medical cannabis patients represent more than 20% of the whole country’s registered patient count. Ultimately, with nearly 2 million monthly adult cannabis consumers, Florida could prove the second biggest market in the country, or even exceed the size of the troubled California market if regulators maintain a laissez-faire approach when the state transitions to adult use.
Beyond being in one of the richest medical cannabis markets on earth, Florida Medical Marijuana Treatment Center (MMTC) licenses are extremely lucrative for 2 other reasons:
1. MMTC’s are required to be fully vertical integrated. In fact, they are not allowed to sell cannabis at any other level than retail unless they receive special permission from the OMMU. Thus, all MMTC licenses in Florida automatically allow the license holder to cultivate, manufacture, distribute, and sell at retail (both in person and via delivery) all Florida legal cannabis products.
2. An MMTC’s license not only grants the right to do all activities within the cannabis industry vertical, but it also allows that MMTC to build and operate an unlimited number of production and retail facilities within the state. In other words, a Florida MMTC’s scale of development is entirely dictated by the market, not by the regulators.
Florida Cannabis Licensing Opportunities
So, for cannabis entrepreneurs, the new licenses in Florida then present an enormous opportunity… at least for those that can afford it.
There are a few challenges that a potential MMTC licensee must meet if they hope to win a licenses:
1. The cost of entry is one of the highest in the world, with a non-refundable application fee of $146,00.
2. Florida’s required vertical integration means that any team applying in the State must be impressive in all areas of the vertical: Cultivation, Manufacturing, Distribution, and Retail. This means only a comprehensive team has a reasonable chance of missing.
3. Adding to the high entry fee, the State awards points for having both infrastructure and funding secured. This is proven given CPA certified financials and significantly adds to the cost of putting forward a competitive application.
4. Florida’s cannabis program is a medical one, and that is taken seriously. A Florida licensed medical doctor or Doctor of Osteopathy must serve as the companies medical director, which of course requires recruitment and financial incentive for a professional of that level.
5. Finally, the state requires that the applying entity has been registered to do business in the State for at least 5 years prior to the application date, meaning most applicants will need to find and acquire a Florida business with a clean record in a fairly short time period.
As you can see, the barriers to entry are high in Florida. However, that extreme barrier to entry, when combined with the opportunity the market itself presents, is one of the reasons all well financed cannabis businesses should consider this opportunity.
To get started on your Florida cannabis license application, fill out the form below to speak with a Florida cannabis consultant: