When it comes to cannabis, all eyes seem to have turned to Georgia. Not only are its two Senate seats still up for grabs, which could have implications on federal cannabis legislation during the next Congressional session, but the State of Georgia also just released a Request for Proposals for its Cannabis Production Licenses. Here is an overview:
- A total of six Production licenses are available—two Class 1 (100,000 sq. ft. of cultivation) and four Class 2 (50,000 sq. ft. of cultivation).
- While you can apply for multiple licenses, you can ultimately only hold one.
- Only one type of product, low-THC oil, can be produced under this license—indeed for now that is the only type of cannabis product that will be legally available in Georgia.
- Local participation plays a role: Applicants should have a Georgia bank account, Applicants must be a Georgia entity, and have support from local government(s).
- There is a social equity component: Applicants must demonstrate a minimum of 20% involvement in the business by one or more minority business enterprises as significant suppliers of good and services for the business.
- Application fees are $25,000 for a Class 1 License and $5,000 for a Class 2 License.
- The Application deadline is December 28, 2020.
By no means is this an easy process or a low barrier to entry, nor will this be a huge and lucrative program at the outset. In fact, businesses should expect to lose in the short term. But, as those in Florida, Illinois, and other places have seen, medical markets can quickly expand to become lucrative, and having a foothold early on is never a bad idea.
Please contact us if you have any question about Georgia and check our blog for continued updates on developments in the cannabis industry.