Under Maryland law and regulations, a cannabis business cannot own more than one cultivation or processing license and more than four dispensary licenses. What does that mean for publicly-traded companies and the large number of private investors who hold their stock? Justin Tepe, a co-founder of the Cannabis Law practice at Goodell DeVries, is quoted on the issue in this piece from the Baltimore Business Journal.
From the article:
Tepe said that state law and regulations make clear that any amount of ownership in more than one cannabis cultivator is a violation.
Tepe called the limit on license ownership “absolutely vital” to the cannabis industry, saying that it ensures non-publicly traded companies can continue to compete in Maryland. But Tepe thinks this issue will only keep cropping up. More firms are consolidating, he said, and there could be a wave of new licenses if and when the state legalizes adult-use recreational cannabis.
Read the full article here: Md. doesn’t want you to own too many cannabis licenses. Here’s how it's happening anyway.