Мобильный 1 Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021June 2021July 2021August 2021September 2021
News Every Day |

Some pot license winners now looking to sell to highest bidder


Former state Sen. Ricky Hendon, who recently was selected to get a pot shop license, said winners have already been getting offers for their permits.
Former state Sen. Ricky Hendon, who recently was selected to get a pot shop license, said winners have already been getting offers for their permits. | Pat Nabong/Sun-Times

State law doesn’t prohibit the new licensees from unloading for millions of dollars and potentially “giving it away to the white boys again,” one critic said.

The applicants waited for more than a year for a chance to jump into Illinois’ booming weed industry.

But now that they have won lucrative licenses to open marijuana dispensaries, craft grow operations or other related businesses, some could sell the licenses before ever opening up — potentially collecting millions in the process.

With the state’s troubled pot licensing process careening toward a conclusion, corporatized weed firms and other cash-rich buyers are now expected to go after the new licenses — many of which are slated to go to so-called social equity applicants, a designation created to boost diversity in the lily-white weed industry.

Rickey Hendon, a former state senator who won a dispensary license in last week’s lottery, acknowledged he and other companies are now entertaining a host of proposals to sell to owners with deeper pockets. A court order in a pending lawsuit has, however, blocked the formal issuance of the pot shop permits for now.

“Of course some of the smaller companies are listening to all kinds of offers,” said Hendon, who became a de-facto spokesman for social equity candidates after they were shut out of the initial licensing process a year ago. “I’m listening to all kinds of offers.”

Hendon, who said he is merely exploring his options, believes a license could fetch between $3 million and $15 million, depending on which statewide region it allows a buyer to set up shop.

An industry source, however, estimated that each of the 185 new pot shop permits is likely worth much less, between $1 million and $3 million. The source pegged the going rate at $4-$5 million for each of the 40 new craft cultivation licenses, which were announced last month along with other permits to infuse and transport cannabis products.

 Pat Nabong/Sun-Times
Edie Moore expressed frustration with social equity applicants quickly selling their licenses.

But critics say the potential massive selloff goes against the spirit of the legalization law and the recent trailer bill Hendon helped write, both of which went to painstaking lengths to give people of color ownership in the highly profitable industry. What’s more, some fear predatory forces will attempt to take advantage of social equity firms trying to turn a quick profit.

Edie Moore, a fierce proponent of diversifying the industry who serves as the executive director of Chicago NORML, a marijuana advocacy group, couldn’t hold back her frustrations about the prospect of social equity firms now dumping licenses so many in the state fought hard to get to them.

“I’m not upset for people who want to get a payday. But I thought that they had got into this business to be in this business, not to just make a quick buck,” said Moore, who helped write the latest pot law and has already won a dispensary permit.

“That’s what we were fighting for,” she added. “For people to build generational wealth on owning and building and creating something within their communities, not giving it away to the white boys again.”

The current pot shop owners are almost all exclusively white, and a similar feeding frenzy for those licenses has already gotten underway as multibillion-dollar cannabis firms went on buying sprees in Illinois.

Moore fears the operators of multi-state pot firms will inevitably buy out social equity licenses and “win again,” a prospect that’s particularly prickly given her experience. She previously sold dispensary and cultivation licenses for medical marijuana to Arizona-based 4Front Ventures — a move she said was prompted by the conditions created by former Gov. Bruce Rauner’s overly cautious handling of the program years before recreational pot was legalized in 2020.

The recreational law, though, contains few restrictions on selling the permits. It says only that craft cultivation licenses can’t be sold until after Dec. 21, according to Charity Greene, a spokeswoman for Gov. J.B. Pritzker’s office. There’s no similar language about selling dispensary, infusion or transportation licenses, though all cannabis permit transfers require regulatory approval.

Should a social equity applicant sell a license to a firm that doesn’t qualify, the buyer must pay back any fees that were waived and any cash owed for state-issued loans or grants.

For its part, the influential Cannabis Business Association of Illinois is now tentatively planning an event where new entrants to the industry can meet existing players, creating an environment for potential deal-making and license sell-offs.

Former state Sen. Pam Althoff, the group’s executive director, noted that many of the new license holders are now in difficult straits because they’ve lost investors and important expertise on their teams as they’ve waited for new licenses to be awarded.

“There have been some massive consequences to many of these applicants,” Althoff said. “And in many instances they decided that it is in their best interest to try to divest the license that they know that they’re not going to have much success moving forward.”

While the event isn’t specifically designed to connect new license holders with buyers, “what comes from those conversations is their own personal business,” she noted.

“We really are committed to meeting the challenge to make the industry diverse, and we want people to be successful,” she said. “But if they can’t, we certainly want to be able to provide them with enough resources and guidance on how to move forward.”

But some worry powerful pot firms could take advantage of those trying to offload licenses. Attorney Akele Parnell, who recently earned dispensary and craft cultivation permits, said he has no problem with other firms flipping licenses — “as long as it’s not predatory.”

“I don’t want people selling for way below market value,” he said.

Read also

Jonathan Franzen: ‘I just write it like I see it and that gets me in trouble’

Fact-checking pro-Trump auditors' spin on election falsehoods

Lewis Hamilton crashes into pit wall and damages car as Lando Norris takes shock pole for Russian Grand Prix

Слот 7

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Giant WAHOO! Best RAW FISH Ever! Wahoo Homemade Sushi Catch Clean Cook

Today24.pro — latest news 24/7. You can add your news instantly now — here


Авто

Во Fresh Auto первыми в мире среди автодилеров открыли магазин в Инстаграм




Новости России
Game News

Twitch makes a deal with the music industry, but streamers still can't use copyrighted songs


Russian.city


Количество заболевших COVID-19 за последние сутки выросло в Архангельской области


Губернаторы России
Андрей Мерзликин

Звезду «Бумера» Андрея Мерзликина «развели» с женой из-за однофамильцев


Путин предложил подумать о проведении еще одного чемпионата мира по футболу в России

Профессиональные советы для продвинутых начинающих Youtube

Жириновский рассказал о партиях, которые на выборах предавали интересы России

«Яндекс.Облако» будет развиваться в Германии


Суд отклонил иск бывшей солистки «Ленинграда» Алисы Вокс к Сергею Шнурову

Игорь Крутой опроверг слухи о романе с Ириной Аллегровой

Little Big анонсировали масштабный тур по России

Ольга Бузова перестала здороваться с Иосифом Пригожиным после скандала с МХАТом


«Обидно, что не смог навязать достойную борьбу». Александр Бублик остановился в шаге от пятого финала на турнирах серии ATP

Сочинской теннисистке Елене Весниной вернули украденные медали

Воры вернули Весниной олимпийскую золотую медаль и оставили подарок с запиской

Елена Рыбакина прошла во второй круг турнира серии WTA 500 в Остраве




Победитель US Open Медведев может не сыграть на Кубке Кремля

Лукашенко передал правительству данные о западных шпионах на белорусских предприятиях

Премьер Венгрии готов прибыть в Москву для встречи с Путиным

В Казани пройдёт кастинг шоу «Музыкальная интуиция»


Режиссёр Бортко поддержал идею Бастрыкина ограничить демонстрацию жестоких сцен на федеральных телеканалах

«Северный поток-2»: Польша решит, будет ли русский газ в Германии

Немецкий политолог Рар рассказал о будущем отношений РФ и Германии

Татьяна Минеева призвала соблюдать экологическое законодательство



Путин в России и мире







Персональные новости
Moscow.media