MN Office Of Cannabis Management Shares Data On Social Equity License Applications

MN Office Of Cannabis Management Shares Data On Social Equity License Applications

Cannabis businesses hopeful for license lottery:

The recreational cannabis industry in Minnesota is taking a step forward during the next few weeks, as business owners hope to win licenses through a social equity lottery that will offer 282 licenses – to more than 3,100 applicants.

The Brief

• More than 1,800 license pre-approval applications from verified social equity applicants continue to be reviewed by Minnesota's Office of Cannabis Management.
• The applications include 586 for microbusinesses, 578 for retailers and 372 for mezzobusinesses.
• Applicants who meet all the criteria of the review and vetting process will advance to the lottery, which will be scheduled once all the applications have been reviewed.

ST. PAUL, Minn. (FOX 9) - State officials have released a breakdown on the types of cannabis business pre-approval applications submitted by social equity applicants ahead of the license lottery this fall.

What we know

Minnesota's Office of Cannabis Management (OCM) said its staff are still reviewing license pre-approval applications from verified social equity applicants.

The application window for social equity business license pre-approval was open from July 24 through Aug. 12.

Official numbers show the majority of applications are for microbusinesses, retailers and mezzobusinesses.

License type breakdown

The OCM also shared the number of each type of license application submitted.

• 586 applications were submitted for Cannabis Microbusiness, or 32.2% of the total number of applications.
• 578 applications were submitted for Cannabis Retailer, or 31.8% of the total number of applications.
• 372 applications were submitted for Cannabis Mezzobusiness, or 20.5% of the total number of applications (defined by the OCM as a business that can grow, make, sell and buy cannabis (including plants and seedlings) and lower-potency hemp products).
• 57 applications were submitted for Cannabis Cultivator, or 3.1% of the total number of applications.
• 45 applications were submitted for Cannabis Manufacturer, or 2.5% of the total number of applications.
• 9 applications were submitted for Cannabis Wholesaler, or 0.5% of the total number of applications.
• 11 applications were submitted for Cannabis Transporter, or 0.6% of the total number of applications.
• 5 applications were submitted for Cannabis testing facility, or 0.3% of the total number of applications.
• 154 applications were submitted for Cannabis delivery service, or 8.5% of the total number of applications.

Violations and enforcement

The OCM said that through Sept. 6, more than 34,056 retail units of "noncompliant hemp-derived cannabinoid products" have been destroyed by state inspectors. The estimated retail value of these destroyed products is $878,490.

Nearly 190 pounds of cannabis flower that was offered for sale without a license was also destroyed during this same time period, with an estimated retail value of $564,900, according to the OCM.

What comes next?

Submitted business license applications will go through a review and vetting process, and if qualified, be entered into a lottery that will award licenses in nine different categories. The first license lottery will be held this fall but the OCM has not yet committed to a firm date.

The license pre-approval will allow applicants to be able to finalize business operations ahead of the market launch in early 2025.

SOURCE: FOX9 KMSP