Delaware Cannabis Application Window Now Opening Sooner

Surprise! Delaware Officials Announce August 19th Start Date

Working in the cannabis industry, the two virtues we tend to value most are patience and persistence. Well evidentially Delaware said enough with patience, let’s get things moving!

In a surprise announcement, the Office of the Marijuana Commissioner announced that they would be opening their cannabis license application window for the first 125 adult-use licenses on August 19, 2024. This is two weeks earlier than previously anticipated and, frankly, at a much earlier anticipated date given that it appeared a delay was inevitable given the proposed regulations had to undergo a round of revisions after a second public comment period.

 

What This First Cannabis Licensing Round Will Be Like

This is just the first license application round in Delaware’s new cannabis program (as is common with most states) but it’s arguably the most important one. The reason for that, is because the license winners from this round will be able to best capitalize on the first mover advantage and start their cannabis business operations far sooner than their other potential competitors.

Available Business License Types and Quantities

We’ll likely be getting some additional updates from the OMC in the coming days, but so far we know that 125 cannabis licenses offered in this round. This is broken down further into the following license types: 

Marijuana Cultivation Facilities

• 60 Available Licenses
  • Open Cultivation License: 20
  • Social Equity Cultivation (≥2500 ft2): 10
  • Social Equity Cultivation (≤2500 ft2): 10
  • Microbusiness Cultivation: 20

Marijuana Product Manufacturing Facilities

• 30 Available Licenses
  • Open Manufacturing: 10
  • Social Equity Manufacturing: 10
  • Microbusiness Manufacturing: 10

Retail Marijuana Stores (Dispensaries)

• 30 Available Licenses
  • Open Retail License: 15
  • Social Equity Retail License: 15

Marijuana Testing Facilities

• 5 Available Licenses
  • Open Testing Facility: 3
  • Social Equity Testing Facility: 2

 

Another Cannabis State, Another Qualified License Lottery

A key piece to note here is that Delaware will be using a qualified lottery system for these cannabis licenses. You need to submit not just a robust and compliant business license application but have some luck on your side too.

 

Application Requirements for the First Delaware Cannabis License Lottery

In their announcement, the Delaware OMC detailed that “guidance matrix and templates will be posted to the OMC website soon.” As of this writing, we are still waiting on these to see what application guidance and templates will be offered. 

Regardless of what the state promulgates, you will want to make sure to meet all the business compliance requirements for licensure and double and triple check your work prior to submission. The state has offered us this so far, indicating what they will require as part of the application process. 

All License Application

Cannabis business applicants will need to have: 

• A detailed business plan including an annual budget and pro forma financial statements
• Safety and security plans addressing safety, security, and the prevention of product diversion.
• Operational, training, and staffing Plans which will include the following:
  • A social responsibility plan outlining diversity goals, including strategies for recruiting and hiring people of color, women, and veterans. This plan should also detail support for their ownership and promotion within the organization, and specify the percentage of employees to be hired from within the respective city or region.
  • A work environment plan to provide a safe, healthy, and economically beneficial working environment, including fair scheduling practices, family-supporting wages, and benefits for employees.
• Regulatory history disclosure, which will be a discussion of any criminal, civil, or regulatory history related to entities previously controlled or managed by the applicant or its managing officers.

Cultivator and Processor License Applicants

That may not be all though. If you’re applying as a cultivator or a processor, you will also need to submit the following:

• Environmental and sustainability plan detailing efforts to minimize environmental impact and resource use, such as water conservation, organic cultivation methods, and other sustainable business practices.
• Quality assurance plan showing written policies and procedures for a comprehensive quality assurance program.

 

Ready To Join The Delaware Cannabis Industry? Here’s What Can You Do Now

Right now, we can go back to the start of the article. Be patient! We are waiting on more information from the State which will hopefully clarify key pieces of information. But, there are proactive steps you can take too. You can start financial modeling and business planning to see if entering the cannabis industry is a worthwhile endeavor for you. We at Canna Advisors are more than happy to help and offer our services here, and with a license pursuit if you determine you want to toss your hat in the ring. 

Contact us now to get started on your Delaware cannabis business application to be ready when the license application window opens.