The issues included “failure of providing documentation that the facility will be operated by individuals eligible.”
By Rebecca Rivas, Missouri Independent
Missouri cannabis regulators could revoke eleven of the 48 licenses for social equity cannabis issued in October, after determining that they did not meet eligibility requirements.
Nine of the facilities were dispensaries, and two were wholesalers.
Canna Zoned is one of those facing license revocation. The Michigan-based company secured two out of 16 cannabis dispensary licenses in Columbia and Arnold.
According to the information provided by The Independent on Friday evening, both of Cana Zoned’s licenses were deemed invalid.
Canna Zoned is listed as the applicant for 104 of the 1,048 dispensary applications entered into the lottery. The Independent conducted an investigation in October that found applicants believed they were partners with Michigan investor, but signed agreements requiring the relinquishment of all control and profits.
Craigslist advertisements from all over the country were used to recruit some applicants.
Cannabis Business Advisors, a consulting firm based in Arizona, was another company to use the strategy of flooding Missouri with lottery applications. The company was linked to over 400 dispensary applicants including six winners.
The state could not certify that all six licenses related to clients of the firm were valid.
Amendment 2 Consultants is a Missouri-based firm that has been involved with more than 80 dispensary applications and two winners. One of the group’s dispensary applications was found to be ineligible.
Abigail Vivas is the chief equity officer for the Missouri Department of Health and Senior Services, which oversees the microbusiness programs. She said that in a Report published Friday, the issues of ineligibility included “failure of providing documentation that the facility will be operated by qualified individuals.”
The microbusiness program was designed to increase opportunities for businesses within the marijuana industry in communities that are disadvantaged. It is part of the constitutional amendment legalizing recreational marijuana, which voters approved in November.
After The Independent’s report in October, state senator Karla May, a St. Louis Democrat , demanded that the state investigate an “egregious exploitation” of social-equity marijuana licenses.
Other eligibility issues mentioned in the report include failure to provide sufficient documentation to verify that the majority owner meets the eligibility criteria, and a disqualifying felonious offense.
The constitution requires that the chief equity office conduct an eligibility assessment within 60 days after the microbusiness licenses are issued, and then make the results public.
According to a press release issued by the department on Friday, the review was complete as of December 1.
According to marijuana laws, licenses that have not been certified can be revoked. Notices of impending revocation give a 30-day period for a response.
Licensees have 30 days to submit documents or information that prove they are eligible for their license and shouldn’t be revoked. The press release stated that all revoked licences would be added to those available for the next application period.
The Missouri Lottery will conduct two separate lotteries to award a minimum of an additional 96 microbusiness licenses. The second of three rounds is tentatively set to start in March 2024, with licenses being issued in July.
The original publication of this story was by Missouri Independent.
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The post Missouri Marijuana Regulators Said A Quarter of Microbusiness License Holders Are Ineligible first appeared on Marijuana Moment.
