What’s Next for Minnesota Cannabis License Applicants?

Navigating Minnesota Cannabis: Key Insights and New Opportunities

One Application Window Is Closed – Others Are Coming Soon

The Social Equity Application period for Minnesota’s cannabis business licenses recently concluded on August 12th, offering a brief twenty-day window for applicants. As the state continues to build its cannabis industry, another license application window is expected later this year or in early 2025. During the initial cannabis licensing process, the Minnesota Office of Cannabis Management (OCM) faced the challenge of creating a regulatory framework while simultaneously processing applications—a common scenario in the rapidly evolving cannabis industry. This should lead to a more streamlined experience for future applicants as the OCM refines its processes.

 

What to Expect Next for Social Equity Cannabis

Currently, the Minnesota OCM is focused on determining which applicants qualify for the license lottery, a crucial step toward obtaining a social equity cannabis license. The OCM has announced that the review process will extend through October, with the lottery anticipated to take place in late October or November.

 

Upcoming Open Minnesota Cannabis Application Opportunities

The next Minnesota license application window will be open to all prospective cannabis business owners, including social equity applicants, and it’s likely the license types available for award will mirror those from the social equity round.

Cannabis License Caps

Until July 2026, the number of adult-use cannabis licenses is capped at

• 50 cultivation licenses,
• 24 manufacturing licenses,
• 150 retail licenses
• 100 mezzobusiness (vertical) licenses

A portion will reserved for social equity-verified businesses. Notably, microbusiness, wholesaler, transporter, testing, and delivery licenses are currently unrestricted outside of social equity limits.

 

License Availability in the Next Application Round

Minnesota’s anticipated number of limited cannabis licenses available in the imminent application round are as follows:

• Cultivation Licenses: 37
• Manufacturing Licenses: 18
• Retail Licenses: 112
• Mezzobusiness Licenses: 75

Unique and Non-Traditional Cannabis Licenses

Other licenses that may be available include:

• Cannabis Microbusiness
• Wholesaler, Transporter
• Testing Facility
• Event Organizer
• Delivery Service
• Lower-Potency Hemp Edible Manufacturer
• Lower-Potency Hemp Edible Retailer
• Medical Cannabis Combination Business. 

 

Preparing for Future License Application Windows

Future Minnesota cannabis applications will likely include similar requirements to the social equity process, with potential additional demands such as:

• Property addresses
• Floor plans
• Labor peace agreements
• Corporate documents. 

New Draft Cannabis Regulations in Minnesota

In related news, the Minnesota OCM released its first draft cannabis regulations amid the social equity application process, with comments open until the end of August. If these regulations are finalized before the next application window, Minnesota applicants will need to reference and adhere to the new rules in their submissions.

Waived Social Equity Fees

Social equity applicants from the previous round won’t need to pay the application fee again and will have an opportunity to update their applications in accordance with any new requirements or regulations in future licensing periods.

As the regulatory landscape continues to evolve, staying informed and prepared will be key to successfully navigating the complexities of Minnesota’s cannabis licensing process.

 

Getting Ahead for the Next Round of Minnesota Cannabis Licensing

To maximize your chances of success in the next cannabis license application round, preparation is key. Now is the time to refine your Minnessota business plans, develop comprehensive cannabis financial models, and ensure that your cannabis license application stands out. The Minnesota OCM has said the process for general licenses will be announced soon. In the meantime, the OCM recommends preparing:

• Business Plan
• Security Plan
• Business Capitalization Table
• Standard operating procedures for: 
  • Quality assurance 
  • Inventory Control Storage, and Diversion Prevention
  • Accounting and Tax Compliance

This will help you be ready when the application period for general licenses opens.

 

Working With Minnesota Cannabis Experts

Canna Advisors specializes in guiding cannabis entrepreneurs through these critical steps. We can assist in crafting detailed business plans tailored to Minnesota’s unique regulatory landscape and provide robust financial models that demonstrate your venture’s viability and compliance. Our Midwest cannabis experience is unmatched.

By working with us, you can enter the next license application window with confidence, knowing that your submission will be both thorough and strategically positioned for approval. Don’t wait—start building your foundation for success today.