Boo-tiful Cannabis Opportunities: Exploring Licensing Amidst the Election FrenzyBoo-tiful Cannabis Opportunities: Exploring Licensing Amidst the Election Frenzy
Cannabis Market Updates!
Boo-tiful Cannabis Opportunities: Exploring Licensing Amidst the Election Frenzy
As we navigate the cannabis licensing landscape during this spooky election season, numerous opportunities await. In this issue, we’ll explore the important updates in California, Minnesota, New York, and the U.S. Virgin Islands. These state and island markets offer valuable, yet challenging, opportunities for entering emerging and new cannabis sectors. We'll also take a closer look at key cannabis ballot measures in the upcoming November elections, along with an overview of the international market outlook. Join us as we explore these opportunities and discuss how you can capitalize on this ever-evolving industry.
New York
Last month, the New York Cannabis Control Board (CCB) signed off on several policy changes aimed at streamlining the processing of existing applications and easing location restrictions. Among these was a $5 million grant program for CAURD businesses that will offer up to $30,000 per CAURD licensees to support businesses with rent, renovations, and security costs. It is expected to launch 11/01, with CAURD applicants being able to apply on that date on a first come first served rolling basis. All applicants must have an active final CAURD license in good standing and bank account in the licensees’ name to apply.
Minnesota
Cannabis licensing in Minnesota has progressed more slowly than initially anticipated. According to the Office of Cannabis Management (OCM), the 1st round review process is taking longer than expected, resulting in delays to the rollout of licenses. As the 1st round of licensing for social equity applicants is still in progress, the timeline for the general open licensing phase remains on hold but is expected to be announced by early 2025. Applicants from the first round, initially set to receive license approvals by fall of this year, are now anticipated to receive the lottery results and approval by year’s end.
Stay tuned for details on how to participate and what to expect as the next phase unfolds.
California
At $5.1 billion dollars in total cannabis sales in 2023, California is still considered the world’s largest and most lucrative cannabis market with the same revenue streams as a small nation’s GDP. However, many retailers and other cannabis businesses have been leaving the State, due to the fact that many moratoriums still exist in over half of the State’s cities and counties, creating an over concentration in the cannabis friendly areas. As such, anyone interested in the California retail cannabis market (medical or adult-use) needs to be hyper focused on their location and search for emerging opportunities. There are several in the State, including the Cities of Petaluma, Santee, and West Sacramento that are currently open. Please click below to learn more.
U.S. Virgin Islands
The U.S. Virgin Islands is soon set to begin their inaugural adult-use cannabis licensing round. The first set of applications will begin being accepted starting this November, with Dispensary licenses becoming available in December. The application process will be merit-based, unlike recent states that have opted for lotteries, ensuring that qualified applicants are selected based on their qualifications rather than chance. Although medical cannabis use was legalized in 2019 on the islands, there are currently no operators in the market, creating a true first-mover advantage for anyone interested in participating.
Election Day
As November election season approaches, several states are gearing up for pivotal cannabis-related ballot measures that could reshape their legal landscapes. In Florida, voters will decide on Amendment 3, which legalizes adult-use cannabis in The Sunshine State. This initiative has sparked significant debate, garnering support from former President Donald Trump while facing opposition from current Governor Ron DeSantis.
Meanwhile, in South Dakota and North Dakota, both states are considering measures to legalize adult-use cannabis as well, reflecting a growing trend in the Midwest towards cannabis reform. It is worth nothing that in the 2020 election ballot, South Dakota voters passed a measure to legalize adult-use cannabis with 69.9% in favor. However, shortly after its passage, a state judge overruled the decision, raising concerns about implementation and regulation.
Another Midwest state, Nebraska, also enters the polls with two votes aimed at creating medical cannabis access. The first is Initiative 437, which will legalize the medical use of cannabis in the state, and the second is Initiative 438, which would establish the Nebraska Medical Cannabis Commission to regulate the state's medical cannabis program.
As discussions around cannabis legalization continue to evolve, the outcomes of these ballot measures could have lasting impacts on local communities and economies.
International
The global cannabis and hemp market continues to see significant growth, with more countries coming to the market in 2024 and 2025. Countries like Japan, Spain, and Ukraine recently legalized medical cannabis, while markets in the UK, Australia, and Germany continue to expand, with a heavy reliance on cannabis imports to meet domestic demand. The UK and Australia, in particular, have seen a rise in medical cannabis use, although both countries still import the majority of their cannabis products.
In 2023, the cannabis and hemp import market totaled $3.61 billion, marking a 14.2% increase across all buyer countries. Europe led the demand, accounting for 35.4% of global imports, followed by North America and Asia. Key markets such as Vietnam, Hong Kong, the Netherlands, and New Zealand experienced the fastest growth in cannabis oil imports. As more nations embrace cannabis legalization and medical use, the international market is poised for continued expansion.
Anyone with interest in either a current adult-use licensed business, or who hopes to apply in the next application round, should reach out to Global Go today!
Global Go LLC provides sophisticated consulting services to the global cannabis and hemp industry. Powered by our technology platform, team of cannabis industry pioneers and world-class consultants, Global Go helps leading cannabis businesses evolve and succeed. We support government regulators, financial institutions, Tribal Nations, and licensed cannabis operators. Global Go specializes in cannabis licensing and applications (99% success-rate over hundreds of applications), compliance automation, inventory, SOPs, mergers and acquisitions, strategic planning, new product launches, technology, security, and best practices. Learn more at https://globalgo.consulting.
