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 prone 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 functions closed in April 2023.

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The brand new licenses are a results of a 2017 regulation 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 because the regulation’s enactment.

The division’s letters of intent sign approval for 22 companies out of the 74 that utilized final yr, every paying a $143,000 utility payment. The analysis course of, carried out by consulting agency KPMG, price the state practically $1.79 million. Nonetheless, the letters don’t grant instant working licenses, leaving room for authorized motion from candidates who weren’t chosen.

Anticipated Authorized Battles

Authorized disputes are anticipated to delay the method, probably for years, given the aggressive nature of Florida’s hashish market.

“Traditionally, when these types of issues occur, litigation does happen. You might have 22 individuals which can be very pleased and 50 individuals that aren’t very pleased in any respect,” Division of Well being spokesperson Jae Williams mentioned in dialogue with The Information Service of Florida.

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

Candidates have known 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—mentioned the method may stall for months and even years with out motion.

“If we do not have a legislative repair, we’ll see these licenses held up for wherever between six months to 2 years,” Savchenko mentioned.

Trade Shifts And New Gamers

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

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

“We’re happy that the licenses are lastly issued, bringing the variety of licensees to 47. We proceed to sit up for working with the governor and legislature to increase entry to secure, lab-tested hashish for Floridians,” the corporate mentioned 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 in need of 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.

“The vast majority of individuals within the business would moderately have had leisure move, however all of us are fairly assured that it will move someday within the subsequent two to 4 years,” Savchenko mentioned.

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

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