Delaware Adult-Use Cannabis Business Opportunities

Since the release of the official application, our team has scoped and outlined precisely what you'll need to submit a qualifying application. While this is only the first round of adult-use cannabis licensing in Delaware, make no mistake that this is the most important round to apply in as it will allow you to capitalize on being the first adult-use cannabis businesses to open in the state.

Cannabis License Lottery Application & Property Requirements

To qualify for the license lottery, applicants will need to submit the following plans:

All Applicants

1. Business Plan which includes a pro forma financial statements and an annual budget
2. Safety and Security Plan
3. Operational Plans
   1. Social Responsibility Plan
   2. Training, and Staffing Plans
   3. Plans for a Safe Work Environment
4. Regulatory History Disclosure

Cultivation & Manufacturing Applicants

1. Environmental and Sustainability Plan
2. Quality Assurance Plan

Each applicant, along with their owners, officers, and directors, will be required to undergo a thorough criminal background check, which will include fingerprinting and a review of their criminal history records. Additionally, property or facility ownership will not be required on the initial application prior to conditional licensing. You will have 18 months after licensure to secure a property for operation.

Delaware's Cannabis Licensing Types and Limits

Delaware seems to be doing something a little differently when it comes to licensing types. The state has broke down the categories into three (3) types:

1) Social Equity Licenses

To meet social equity eligibility in Delaware, an individual must hold at least 51% ownership and control over the business and be one of the following:

• A resident for at least five (5) of the preceding ten (10) years in a disproportionately impacted area
• Previously convicted of or adjudicated delinquent of a cannabis offense (with exceptions)
• Married to or the child of someone with a cannabis offense

2) Micro Business Licenses

These license applicants must:

• Employ no more than 10 employees
• Hold only a tier 1 cultivation facility license

3) Open licenses

These licenses are open for those who do not qualify for social equity provisions and will not be eligible for a microbusiness.

Each of these license types will be split between the conventional business types available for applicants.

Available Licenses

• Retail (up to 30 licenses)
  • 15 social equity licenses
  • 15 open licenses
• Cultivation (up to 60 licenses)
  • 20 microbusinesses
  • 20 social equity licenses (less than or equal to 2500 sqft: 10; more than or equal to 2500 sqft: 10)
  • 20 open licenses
• Manufacturer (up to 30 licenses)
  • 10 microbusinesses
  • 10 social equity licenses
  • 10 open licenses
• Testing Laboratory (up to 5 licenses)
  • 3 open licenses
  • 2 social equity licenses

Localities will be able to prohibit marijuana businesses from operating in their area through ordinance.

License Application Fees

All applicants will need to submit a nonrefundable application fee. All open licenses, regardless of license type, will have a $5,000 application fee while social equity qualifying applicants will only pay $1,000 and microbusinesses will pay $3,000.