Marking a significant step forward in launching Minnesota’s adult-use cannabis market, the state’s Office of Cannabis Management (OCM) began accepting applications for cannabis business licenses on February 18, 2025. The application cycle runs through March 14th and includes various license types, such as microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business.
What You Need to Know:
- Minnesota is launching its adult-use cannabis market.
- The state’s new Office of Cannabis Management is accepting cannabis business license applications from February 18 through March 14.
- OCM will accept applications both from verified social equity applicants and from any applicant seeking to participate in general licensing in the following license types: microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business.
Four of the license types (mezzobusiness, cultivator, manufacturer, and retailer) are capped, with half of the available licenses reserved for verified social equity applicants (see chart below). Qualified applicants will go through a two-part lottery. The first part is for verified social equity applicants, and if they are not selected, they will be entered into the second-part general lottery, which is open to all applicants. This means social equity applicants may be provided with up to two opportunities to be entered into a lottery. The capped licenses lotteries are expected to begin between May and June, depending on the number of applications received. The six uncapped—or unlimited—license types include microbusiness, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business. Applications for these license types will be reviewed by OCM on a rolling basis and because they do not involve a lottery, applicants will be able to begin their final steps to obtaining a license as soon as they are deemed qualified. Applicants who were previously denied during the pre-approval process for uncapped license types will receive additional information requests from OCM. These applicants will be able to correct any errors on their previously submitted applications and once corrected can move forward in the process. Later in the year, OCM will evaluate market performance and determine a cap for these license types.
Applications for cannabis event-organizer licenses will open later in the summer, while licenses for lower-potency hemp edible manufacturers and retailers will begin being accepted in the fall.
It is important to note that OCM will require the same level of information and detail from applicants whether you are applying for a capped or uncapped license. For example, applicants will need to provide, amongst other things, information related to: ownership and control, a security plan, a business plan, various standard operating procedures and other information specific to the license type.
The Minnesota Legislature has also implemented strict rules regarding True Parties of Interest which outline specific ownership requirements and limitations and prevent one entity from owning multiple licenses.
If you are interested in pursuing a Minnesota cannabis license and need assistance with your application, please contact a member of the Saul Ewing Cannabis industry group.
