At the Benzinga Cannabis Conference held in Chicago, optimism was growing among cannabis industry insiders despite ongoing challenges. This sentiment contrasts sharply with the recent issues surrounding Missouri’s microbusiness cannabis licenses, where many applicants have faced disqualification.
OG Article: here
View our Fair Use Policy: here
Watch the Live Show HERE
Watch the Commentary Here
In Missouri, the Division of Cannabis Regulation has struggled to ensure that its microbusiness license program—which is intended to benefit socially disadvantaged individuals, such as disabled veterans, people with low incomes, and those with non-violent marijuana convictions—achieves its intended goals. Of the 24 dispensary licenses awarded through a lottery in June, only seven were successfully certified as of this past Thursday, leaving 17 licensees disqualified primarily due to insufficient documentation.
This sharp drop in certification, particularly when compared to the first round of license issuance last year, has raised concerns. The missed certifications and license revocations—with only 25 of 57 licenses being certified—point to a potential larger issue of predatory practices within the cannabis industry.
These practices reportedly involve groups with substantial resources—often from Arizona, Michigan, and Missouri—that recruit disadvantaged individuals as fronts for cannabis businesses. These groups flood the lottery with applications, increasing their odds of winning licenses, but then allegedly sideline the disadvantaged applicants from control and profits.
David Huckins, a disabled veteran who successfully obtained and retained his dispensary license, expressed frustration at this exploitation of the system. Huckins and other microbusiness licensees are concerned that the original intent of the program—to support disadvantaged entrepreneurs—is being undermined by wealthy investors seeking to monopolize the market. This issue also threatens the entire supply chain, as fewer grow facilities have been certified, which could have a significant impact on the businesses dependent on these operations.
Huckins’ experience highlights both the promise and pitfalls of social equity programs in the cannabis sector. While the lottery system offers opportunities for those who might otherwise be excluded, its susceptibility to manipulation by larger investors presents a challenge to regulators and applicants alike.
Comments