Minnesota's Office of Cannabis Management is gearing up for its inaugural lottery to distribute licenses for cultivating, processing, and selling cannabis. The office has recently released data on the applicants and their backgrounds, revealing that military veterans and individuals with prior marijuana convictions are the largest groups applying for social equity status.
Social equity status is awarded to individuals disproportionately impacted by the war on drugs, including those arrested or convicted for marijuana-related offenses, military veterans, and residents of areas with stringent enforcement. Out of the 3,144 applicants for social equity status, 2,307 were approved, with veterans and those with prior marijuana convictions comprising the majority.
The data also indicates that 44.1% of applicants provided in-state addresses. However, this does not guarantee that they intend to operate their businesses within Minnesota. The office notes that applicants do not yet need to specify their business locations, though this will be required later for those selected in the lottery.
A total of 1,817 applications were submitted for 280 available licenses, with the most interest in cannabis retail and micro- and mezzobusinesses. Fewer applications were received for licenses in categories such as cannabis wholesaling, transportation, and testing facilities, which might suggest potential supply challenges for the industry.
The lottery is anticipated to occur this fall, with winners notified and given time to prepare for the industry launch in the spring. Licenses for cannabis cultivation will be issued separately later this year. Small microbusinesses and mezzobusinesses will have immediate rights to start growing and selling cannabis, while large cultivators will receive early cultivation rights to help ensure a consistent product supply.
Overall, the data indicates that Minnesota's cannabis industry is set for a promising launch, with a broad range of applicants eager to enter the market.
For more information on Minnesota's Social Equity program go to:
https://mn.gov/ocm/businesses/equity-applicants/overview.jsp