Belushi's Farm

Florida issues long-awaited medical cannabis licenses after two-year wait

Published

10 months ago

November 27, 2024

The Florida Department of Health issued intent-to-approve letters to 22 operators on Tuesday, the the first expansion of the state’s cannabis market since 2017.

Recipients of the letters included several established out-of-state brands, including California-based STIIIZY, Ohio’s KLUTCH Cannabis and even Colorado pioneers Star Buds. The expansion, combined with five recently approved Black farmer licenses, will bring the total number of operators to around 50 from the original 25-license cap.

Successful applicants must post $5 million bonds and launch operations on strict timelines, with cultivation starting within 60 days of final approval, according to state regulations.

“The department will physically inspect each facility,” Sally Kent Peebles, partner at cannabis law firm Vicente LLP, said during a recent online webinar. “Operators have seven days to address any violations.”

The approvals follow an application process that began with emergency rules in December 2022. Applicants paid $146,000 to participate at the time.

Florida allows unlimited retail locations and production capacity, though the health department last year raised annual license renewal fees from $60,000 to over $1 million.

Industry experts have long expected legal challenges from unsuccessful applicants have added value to the licenses, with previous permits trading for tens of millions of dollars.

“Many people take the opportunity to fight if they were unsuccessful,” Peebles said. Such litigation could also delay final approvals of this latest batch of licenses.

The expansion comes weeks after Florida voters rejected recreational marijuana legalization despite a $140 million campaign backed by Trulieve Cannabis Corp. (OTC: TCNNF).

Additionally, existing operators could also face stricter oversight under new state leadership.

“They are not a kinder, friendlier department now,” Fluent Cannabis CEO Robert Beasley said going into the general election.

Florida’s medical market is projected to reach $2.8 billion in sales this year, with BDSA recently forecasting 12% annual growth through 2028. The state’s existing infrastructure could support up to $3 billion in sales, Vicente’s economics director Andrew Livingston previously told GMR.

Companies that recieved intent-to-approve letters: