Missourians compete with out-of-state marijuana businesses – KY3

ST. LOUIS (AP) — Some Missouri business owners looking to profit from the state’s burgeoning marijuana industry worry that they’ll lose out to established out-of-state organizations that have been aggressive in applying to process or sell medical marijuana in Missouri.

Nearly 700 groups filed a total of 2,163 marijuana businesses applications in Missouri, the St. Louis Post-Dispatch reported. The state will issue only 60 licenses to grow pot, 86 to make marijuana-infused products and 192 to open dispensaries. The state has contracted with a company that will use a blind scoring process to assess the applications and issue licenses to the top scorers by the end of the year.

But a point-based licensing competition can make it harder for small businesses to compete because of the money and resources required.

“There are rich men in suits coming from all over this country with bags full of cash,” said Richard Rodriguez, a St. Louis restaurant owner who applied to open a dispensary. “I’m all for competing in a fair playing field. But that’s not what appears to be happening here in Missouri.”

Rodriguez paid $6,000 for an application fee, plus the cost of hiring an architect firm, attorneys to answer regulatory questions and pay a property owner for a conditional lease. In all, he has spent a nonrefundable $40,000 during the application process for just one dispensary.

Missouri became the 33rd state to legalize marijuana for medicinal purposes last November after a ballot measure was backed by 65% of voters.

The state has collected more than $13 million in nonrefundable fees — $6,000 per dispensary or processing license and $10,000 per cultivation license.

The most licenses any one business can win is 11, including five dispensary licenses and three licenses each for cultivation and processing operations. At least 21 groups,

Read More Here...

Leave a comment

Your email address will not be published. Required fields are marked *