Minnesota’s Office of Cannabis Management is preparing for its first lottery to distribute licenses to grow, process, and sell cannabis. As part of the process, the office has released data on the number of applicants and their backgrounds. According to the data, military veterans and individuals with prior marijuana convictions make up the largest group of applicants seeking social equity status.
Social equity status is given to individuals who were disproportionately affected by the war on drugs, including those who were arrested or convicted for marijuana-related crimes, military veterans, and individuals who lived in areas with aggressive enforcement. Of the 3,144 individuals who applied for social equity status, 2,307 were approved, with the majority being military veterans and those with prior marijuana convictions.
The data also shows that 44.1% of applicants gave an in-state address, but this does not necessarily mean they plan to operate their business within the state. The office stresses that applicants do not yet need to provide a specific location for their business, which will be required later for lottery winners.
The office received a total of 1,817 applications for 280 licenses, with the most popular categories being cannabis retailers and micro- and mezzobusinesses. However, there were fewer applicants than licenses available for cannabis wholesalers, transporters, and testing facilities, which may indicate a shortage of products for the industry.
The lottery is expected to take place this fall, with winners being notified and given the opportunity to prepare for the rollout of the industry in the spring. The exception is for licenses that include growing cannabis, which will be issued later this year. Small microbusinesses and mezzobusinesses will be allowed to start growing and selling cannabis immediately, while large cultivators will have early cultivation rights to ensure a steady supply of product.
Overall, the data suggests that Minnesota’s cannabis industry is poised for a successful rollout, with a diverse group of applicants seeking to enter the market.
