Florida To Award 22 New Hashish Licenses After 18-Month Wait—Authorized Battles Forward? – Trulieve Hashish (OTC:TCNNF)

Florida’s Division of Well being introduced plans to award 22 new medical hashish licenses, a call that might reshape the state’s hashish business 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 purposes 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 important consideration because it marks the primary likelihood for brand new companies to enter Florida’s medical hashish market for the reason that legislation’s enactment.

The division’s letters of intent sign approval for 22 companies out of the 74 that utilized final 12 months, every paying a $143,000 utility price. The analysis course of, carried out by consulting agency KPMG, value the state almost $1.79 million. Nonetheless, 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 individuals which can be very blissful and 50 individuals that aren’t very blissful in any respect,” Division of Well being spokesperson Jae Williams stated in dialogue with The Information Service of Florida.

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

Candidates have referred to as for legislative intervention to stop extended delays. Lawyer Paula Savchenko, who labored with Florida Sports activities Consultants, Inc.—working as Belushi’s Farm Florida—stated the method may 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 stated.

Business Shifts And New Gamers

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

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

“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 broaden entry to secure, lab-tested hashish for Floridians,” the corporate stated in an announcement.

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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 acquired 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 business leaders, together with Trulieve.

“Nearly all of individuals within the business would moderately have had leisure go, however all of us are fairly assured that it is going to go someday within the subsequent two to 4 years,” Savchenko stated.

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

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