“It’s imperative that the microbusiness programme operates as intended by the voters-approved law.”
By Rebecca Rivas, Missouri Independent
Last week, Missouri’s Division of cannabis Regulation stated that they’ve “become aware of” the fact that people who received small-scale marijuana business licenses — which are intended to increase opportunities for businesses within disadvantaged communities — now try to sell them.
The state awarded 48 licenses on October 2 to the winners in a lottery to determine who would be eligible to take part in Missouri’s Microbusiness Program.
In a guide released on 10 October, the division reminded that if license winners attempt to sell them, they must remain majority-owned and operated by people who meet eligibility requirements.
Seven categories of people may qualify for a license to operate a microbusiness. These range from living in an impoverished area or having a low income to arrests and incarcerations that were related to marijuana offenses.
In an email sent to The Independent, Lisa Cox replied that “the division is aware of two advertisements”.
Cox stated, “We spoke with the licensees directly and they explained that they were seeking investors. They do not plan to sell their licenses before they become operational or without the department’s approval.” It is permissible to seek additional investors before becoming operational, as long as the ownership change does not exceed 50%.
The division stated that any application for a change of ownership “must include eligibility documentation” from any new individuals whose financial or voting interest will contribute to a majority ownership.
The division may impose penalties such as fines, suspension, or revocation if ownership is transferred without its approval.
Voters approved the microbusiness program in November, through the constitutional amendment which legalized recreational marijuana.
In a release on Friday, division director Amy Moore stated that it was imperative for the microbusiness program to operate in the way the law intended by the voters. The regulations around microbusiness ownership will ensure that marginalized or underrepresented people are leading this segment of the legal marijuana industry and gaining benefits from it.
On October 2, the division published the names of the winners, but little is known about them. The division usually posts the contact information of licensed facilities on its site, but it did not do so for microbusiness license holders.
Cox stated that the division is currently working to post this information.
In each of Missouri’s eight Congressional Districts, six winners were chosen.
Two of the six microbusiness dispensaries in each district will be wholesale microbusiness facilities, where the owner can grow up 250 plants.
Many of the winning names, such as “Cannarooted LLC”, “Frankenstein Enemy, LLC”, and others, are not registered legal business names in Missouri.
In one district the winner’s name is not revealed and he or she is only identified as an “individual.”
John Payne, the founder and managing partner of Amendment 2 Consultants said that he had worked with several clients who were applying for microbusiness licences in various parts of the state. He said that none of his clients who won licenses were trying to sell them, but he was aware that “some licences are being sold.”
From July 27 to August 10, the state received 1,625 applications.
The state hasn’t yet revealed which categories of eligibility are most common in the applications. However, it is likely to be included in the Chief Equity Officer’s Annual Report that will be due on January 1.
The $1,500 application fees can be refunded to applicants who are not selected by the lottery. This must be done by submitting an application for refund. The division will accept refund requests starting November 2. A microbusiness application refund form and instructions for refunds will be posted on its website.
Additional 48 licenses are expected to be issued both in 2024 and 2025. Visit Cannabis.Mo.Gov for more information on microbusiness licensing requirements and the application process.
This article was originally published by Missouri Independent.
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The original post Missouri Officials warn Marijuana microbusinesses that license sales need to comply with ownership criteria first appeared on Marijuana Moment.
