Delaware Cannabis Application & Licensing

• Population: 1.032 million (2023)
• Median Income: $79,325
• Largest Cities: Wilmington (71,034), Dover (38,879), Newark (30,655), Middletown (23,573), and Bear (23,070)
• Medical Cannabis Patient Count: 29,039
• 49% New Castle County, 32 % Sussex County, & 19% Kent County
• Medical Cannabis Total Sales: $52.5 million (2023)

• Open License: This category encompasses various license types tailored for individuals and entities from any state eager to participate in Delaware's burgeoning cannabis market. Open licenses include Cultivation Facility Licenses, Product Manufacturing Licenses, Retail Marijuana Store Licenses, and Testing Facility Licenses.
• Microbusiness License: To qualify for a microbusiness cultivation or product manufacturing license in Delaware, applicants must fulfill all specific conditions, including:
• Ownership of 51% or more by individuals who have resided in Delaware for a minimum of 5 out of the preceding 10 years.
• Employing no more than 10 personnel.
• Operating a facility with a size not exceeding 2,500 square feet.
• Possessing no more than 1,000 plants per month.
• Social Equity License: The state of Delaware is actively promoting social equity within the cannabis industry. To be eligible for a social equity cannabis license in Delaware, applicants must meet one of the following specific criteria, such as:
• Ownership of 51% or more by individuals who have resided in a disproportionately impacted area for at least 5 of the preceding 10 years. These areas have not been defined as of yet.
• Was convicted of any cannabis offense in any state, except for the following : (1) having a prior Tier 3 cannabis offense conviction or (2) delivery to a minor related to a cannabis offense.

• Cultivation Facility (60 Available)
• Available for both indoor and outdoor growing operations.
• Tier 1— less than or equal to 2,500 square feet of cannabis plant grow canopy for an indoor facility or less than or equal to 1 acre of cannabis plant grow canopy outdoors
• Tier 2—2,501-7,500 square feet indoor, 1.1-2.5 acres outdoors
• Tier 3—7,501-10,000 square feet indoor, 2.6-5 acres outdoors
• Tier 4—10,001 or more square feet indoor, 5.1 acres or more outdoors
• For facilities with canopies less than 2,500 square feet in Tier 1, 20 microbusiness licenses and 10 social equity licenses will be granted.
• For facilities with canopies more than 2,500 square feet in Tiers 2, 3, & 4, 20 open licenses and 10 social equity licenses will be issued.
• Product Manufacturing (30 Available)
• With an equitable distribution of 10 licenses for social equity applicants, 10 for microbusinesses, and 10 open licenses.
• Retail Store (30 Available)
• With 15 open licenses and 15 designated for social equity applicants.
• Testing Facilities (5 Available)
• Serving as quality control labs to ensure compliance with Delaware's stringent cannabis product standards.
• Of these, three licenses will be available for open application, while two will be exclusively reserved for social equity participants.

In a departure from previous plans, Delaware will now implement a lottery-based system for the cannabis application process, allowing applicants to become eligible through this method.
• July 11, 2024
• On this day, Delaware anticipates finalizing the comprehensive regulations governing the recreational cannabis industry
• September 2024
• All license applications will start to be accepted
• October/November 2024
• Licenses starting to be issued on a staggered schedule
• Cultivation licenses will be the first to be issued
• December 2024
• Manufacturer licenses beginning to be issued
• March 2025
• Retail Stores and Testing Facility licenses will be the last to be issued

To be eligible for entry into the licensing lottery, individuals must provide the following sets of plans:
• Business Plan which includes a pro forma financial statements and an annual budget
• Safety and Security Plan
• Operational Plans
• Social Responsibility Plan
• Training, and Staffing Plans
• Plans for a Safe Work Environment
• Environmental and Sustainability Plan (cultivation & manufacturing only)