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After facing concerns regarding the assessment of applications, the Alabama cannabis regulator reissued the licenses for the test, transport and distribution of medical cannabis under the 2021 law on Thursday, reopening the stalled process that had been halted back in June, reported Alabama Reflector.
Almost all businesses granted licenses two months ago have had their licenses renewed, and the commission has also given additional licenses to companies seeking to expand their medical cannabis operations.
Illinois cannabis operator Verano Holdings Corp. (CSE:VRNO) (OTCQX:VRNOF), who secured a highly sought-after Integrated Facility License in June, lost its chance to get a share of the state market. The Alabama Medical Cannabis Commission chose Insa Alabama LLC instead.
Verano Alabama, LLC, a joint venture established by Verano, was awarded one of the five coveted licenses. This vertical license allows a business to operate a cultivation and processing facility as well as five retail cannabis dispensaries throughout the state.
"We are extremely disappointed and frustrated," Verano told Green Market Report in an emailed statement, claiming it had "the highest score of any applicant across the entire pool."
"This arbitrary and capricious action by the commission denies the state and its prospective medical patients access to a well-capitalized applicant, and the company will pursue all options to defend our rightfully earned Integrated Facilities License, including legal remedies," the company email continued. "Our meticulous and detailed application spoke for itself and demonstrated Verano's experience and strong track record operating best-in-class retail and cultivation facilities in 13 states."
After redoing the license allocation, the cannabis regulator chose 24 winners out of 90 eligible license applications, including five integrated, seven cultivation, four processor and dispensary licenses each, three transporters and one testing lab license.
Among the concerns that prompted the revision of issued licenses was the need for more transparency in the licensing process. In return, many companies sued the commission over closed-door meetings.
Rex Vaughn, who replaced Steven Stokes as the newly elected chair of the commission following scrutiny around Stokes' position as head of AMCC, said additional licenses would be issued in the future.
"We will reevaluate, go through the investigative process and see where we are," he said. "So those of you who have not received a license today, don't lose heart. I think there may be another day."
Darren Weiss, president of Verano Holdings, is a speaker at the upcoming Benzinga Cannabis Capital Conference in Chicago this Sept 27-28. No doubt he’ll have more news on the company’s challenges in Alabama. Join us for that and more discussions with our invited guests and experts. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment, culture and branding.
Photo: Courtesy of Berk Ozel and IRA_EVVA and Anneleven Stock by Shutterstock
