On Monday, the Department of Health in New Jersey announced that interested parties could start submitting their applications to grow and sell marijuana. Both nonprofit and for-profit entities are eligible to apply during this round of licensing.
Those planning to be growers or sellers of medical marijuana have until August 21 to submit their applications. New Jersey plans to license five additional cultivation facilities as well as 15 medical marijuana dispensaries. 4 licenses will also be granted to “verticals.” These are entities which are vertically integrated (they can cultivate, process and sell marijuana).
Entities that apply for the licenses will pay an application fee of $20,000 and those whose applications aren’t successful will get back $18,000 of that application fee.
All the people involved in the companies that apply have been notified that they will be subjected to a criminal background check. These people include directors, owners, board members and employees.
The interested companies are also expected to provide proof that the local authorities in the area where they wish to operate have given them approval to operate a marijuana business in that area.
Another requirement is that the companies must submit their security plans as well as an environment impact statement as they send in their applications.
All the companies that apply are expected to show that they have sufficient experience in the particular aspect of the industry for which they would like to be licensed. For example, aspiring growers must show they have experience cultivating medical marijuana. Quality assurance and quality control are important, so applicants are also required to submit their plans for these aspects of their operations.
While the state hasn’t imposed any minimum level of capitalization that aspiring industry participants should have, the applicants are nonetheless expected to provide proof that they have sufficient funding for the operations they wish to undertake. Funds should be available for the activities shown in their plans.
The state has also organized a pre-application webinar for all those interested on August 2. The Department of Health has revealed that people can submit the questions that they would like the department to address during that webinar. While it may not be practically possible to respond to each of the questions submitted, the state will address the issues that cut across the queries sent in.
This medical marijuana program expansion comes at a time when plans to legalize adult-use pot failed after advocates failed to secure ample support in the state senate and a vote on the matter was called off at the last minute. Analysts expect that the cannabis industry, including entities like Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) and ChineseInvestors.com Inc. (OTCQB: CIIX), will take comfort in the fact that with the expansion of the medical cannabis program, patients will get solutions to many of the issues that they have been facing, such as lack of variety in the products available.
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