Kentucky Cannabis Guide: Processing & Cultivation Licenses

It’s Time to Apply for a Cannabis License in Kentucky

We’re in the midst of the Kentucky cannabis license application period window and there’s three license types available. And don’t worry, you still have time to apply and we’re here to help if you are interested! Of these licenses, we’re going to focus on two right now: cultivation and processing to break down what’s necessary for the license application, buildout, and vendor search.

 

Applying as a Cannabis Cultivator or Processor

Something important to note in Kentucky is that you will have to choose which license to pursue before applying. You cannot apply for both a cultivation and processing license. Each business type has their pros and cons and that will be up to the business applicant and its owners to decide which they would be better suited for. Kentucky will be issuing 16 cultivation licenses (10 for Tier I, 4 for Tier II, and 2 for Tier III) and 10 processor licenses.

 

Similar Application Requirements but Different License Fees

The overall application requirements for each license type are fairly similar. Regardless of if you’re applying for a cultivator or processor license, applicants will need to submit the same documentation such as a financial plan, a site plan, an operational plan, and a timeline of steps to take towards operational capacity.

The difference between application requirements is a bit more subtle. Depending on the tier you’re interested in for cultivation, you will need to show anywhere from $50,000-$500,000 in capital for the sufficient capital requirement while processors will need to show $150,000.

Non-refundable application fees also vary for cultivators (anywhere between $3,000-$20,000) and processors ($5,000) along with the initial licensing fee ($12,000-$50,000 for cultivators and $25,000 for processors).

 

Establishing Your Kentucky Cannabis Business

Once you have secured your Kentucky cannabis license (anticipated to be awarded in October 2024), you’ll need to start establishing your cannabis business and the buildout itself can vary based on a myriad of factors. This can be anything from the cost of retrofitting, equipment purchases, product inventory, and staff/personnel.

Navigating Cannabis Property Across Kentucky Counties

Regarding your business location it’s important to note that Kentucky is in the process of allowing counties and municipalities to opt-out of allowing cannabis businesses in their boundaries. The Kentucky Office of Medical Cannabis has been very good with tracking these opt-outs (and opt-ins) so it’s good to stay on top of this before narrowing in on a property. But let’s say you have an ideal property, submit your application, and only after does a local government opt-out happen. No need to panic, you will have 120 days to change your location following the awarding of your license.

 

Building Out Your Cannabis Team (And Business)

Vendors

No matter how small an operation may be, or how industrious an individual may be, you’ll need some help in getting the actual cannabis cultivation or processing off the ground. This can come into play when looking for architects, attorneys, point of sale systems, and furniture, fixtures, and equipment.

We have strong cannabis industry partnerships which can help with the actualization of your business through essential vendor connections and making your cannabis business a reality.

Staff

None of this can be possible too without having a robust cannabis staff at your disposal. In search for a General Manager? Someone with ample grow experience? What about someone who knows everything and everything about solventless extraction?

Through our sister company H2 Talent, we can also connect you with viable candidates to fill out all the positions you need to adequately keep your operations busy and knowledgeable.

 

Prepare Your Kentucky Medical Marijuana Business Application Now

As Kentucky begins accepting applicants for its first ever medical marijuana licensing round, you’ll want to ensure your application is submitted with accurate material that sets you up for a successful cannabis business. The best way to do that is working with experienced cannabis consultants that know the process and can efficiently and flawlessly execute the application process. 

Contact our team of experts today to begin or continue working on your Kentucky medical cannabis business application.