Florida To Award 22 New Cannabis Licenses After 18-Month Wait—Legal Battles Ahead? – Trulieve Cannabis (OTC:TCNNF)

Florida’s Division of Well being introduced plans to award 22 new medical hashish licenses, a call that would reshape the state’s hashish trade however is more likely to face authorized challenges.

The announcement, posted Tuesday on the company’s web site (by way of Tallahassee Democrat), comes greater than 18 months after functions closed in April 2023.

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The brand new licenses are a results of a 2017 legislation mandating a rise in licenses because the variety of medical marijuana sufferers grows, which now surpasses 880,000. This course of has attracted vital consideration because it marks the primary probability for brand new companies to enter Florida’s medical hashish market because the legislation’s enactment.

The division’s letters of intent sign approval for 22 companies out of the 74 that utilized final yr, every paying a $143,000 utility charge. The analysis course of, carried out by consulting agency KPMG, value the state practically $1.79 million. Nevertheless, the letters don’t grant rapid working licenses, leaving room for authorized motion from candidates who weren’t chosen.

Anticipated Authorized Battles

Authorized disputes are anticipated to delay the method, presumably for years, given the aggressive nature of Florida’s hashish market.

“Traditionally, when these kinds of issues occur, litigation does happen. You may have 22 folks which can be very completely happy and 50 folks that aren’t very completely happy in any respect,” Division of Well being spokesperson Jae Williams mentioned in dialogue with The Information Service of Florida.

He additionally famous the substantial investments made by candidates and the division’s duty to make sure that accredited operators meet excessive requirements for high quality.

Candidates have known as for legislative intervention to stop extended delays. Legal professional Paula Savchenko, who labored with Florida Sports activities Consultants, Inc.—working as Belushi’s Farm Florida—mentioned the method might stall for months and even years with out motion.

“If we do not have a legislative repair, we will see these licenses held up for wherever between six months to 2 years,” Savchenko mentioned.

Business Shifts And New Gamers

Notable candidates receiving letters embrace Florida Sports activities Consultants, Inc., led by actor Jim Belushi, who additionally operates a hashish farm in Oregon. Different accredited companies embrace STIIIZY Florida, LLC, A Good Resolution, LLC and Idea Wellness of Florida, LLC. The additions convey Florida nearer to doubling its licensed operators, which presently stand at 25, managing over 690 dispensaries statewide.

Quincy-based Trulieve Hashish Corp. TCNNF, the state’s largest medical marijuana operator, welcomed the growth.

“We’re happy that the licenses are lastly issued, bringing the variety of licensees to 47. We proceed to look ahead to working with the governor and legislature to develop entry to protected, lab-tested hashish for Floridians,” the corporate mentioned in a press release.

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Broader Context

The choice to award licenses coincides with the defeat of a proposed constitutional modification that sought to legalize leisure marijuana.

The measure obtained 56% voter approval however fell wanting the 60% threshold wanted for passage. Governor Ron DeSantis performed a major function in opposing the modification, which had been closely supported by trade leaders, together with Trulieve.

“Nearly all of folks within the trade would somewhat have had leisure cross, however all of us are fairly assured that it will cross someday within the subsequent two to 4 years,” Savchenko mentioned.

For now, Florida’s medical marijuana trade is bracing for the subsequent part, with new gamers poised to enter the market and potential authorized hurdles nonetheless forward.

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