Medical cannabis in the Commonwealth of Kentucky is now legal as of January 1, 2025, with increasing opportunities for businesses and patients alike.
Investors and market participants should be aware that, although cross-ownership of more than 10% across license classes is prohibited, the Governor himself has signaled that there are many opportunities for combining economic interests, such as Management Services Agreements. Meanwhile, licenses can freely be sold and the relocation process for lottery winners is in full swing.
Governor Andy Beshear took an aggressive posture towards the launch of the regulated medical cannabis marketplace, stating a goal of beginning medical cannabis sales in early 2025. At the end of 2024, the Kentucky Office of Medical Cannabis ("OMC") awarded the following licenses by lottery: 10 Tier I (2,500 sq. ft.) Cultivators, 4 Tier II (10,000 sq. ft.) Cultivators, 2 Tier III (25,000 sq. ft.) Cultivators, 10 Processors, and 48 Dispensaries.
In short, Kentucky recognizes that lottery winners will benefit from the experience and knowledge of accomplished partners. The Governor has stated that license recipients may benefit from the "significant experience that may get [the license] to the market, and get it [there] faster." As Kentucky's history to date has confirmed, the focus here is getting licensees operational as quickly as possible in order to benefit the growing number of citizens registering to become medical cannabis patients in the Kentucky marketplace. As of January 7, 2024, Governor Beshear announced that 760 Kentuckians had already applied for a medical card through an online portal launched just last week, notwithstanding the fact that no medical cannabis licensees have yet to commence operations.
Read more at JD Supra