Maryland’s High-Demand Marijuana Market Undermined By Restrictions, Delays

The rollout of Maryland’s social equity marijuana program has faced significant delays, with none of the businesses open nearly a year after they were awarded licenses.

Part of the issue is that it’s difficult to attract investors to a business and challenging to find real estate.

Maryland’s cannabis regulations require that the original social equity applicant retain 51% ownership in the company.

A separate social equity partner can own 14% of the company, leaving just 35% for a non-social equity investor.

Further complicating matters is that the original social equity licensee must hold the license for five years, a measure that was taken after Maryland witnessed social equity applicants in other states flipping their permits soon after they were awarded.

“It can be challenging to entice investors and raise capital if you can’t give them any ownership or control,” said attorney Meg Nash, a partner who covers Boston and Maryland for the Vicente law firm.

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