The Los Angeles Department of Cannabis Regulation is preparing to open up Phase 3 of its commercial cannabis licensing program, which will issue 250 new storefront retail licenses to social equity applicants and their partners, as well as 60 new cannabis delivery licenses. As the City rolls out this next phase focusing on new retail operations, the license holders from Phase 2 – cultivators, manufacturers, and distributors who were operating in the City through medical marijuana collectives before 2016 – are getting their newly-licensed operations off the ground and running. Many applicants from Phase 2 are seeking capital and support to get through the startup phase of operations, and many investors are looking for ways to become involved in licensed cannabis as soon as possible. Now is a great time for potential investors to team up with Phase 2 applicants in order to get going right away with licensed commercial cannabis in the City of LA. The DCR is now allowing new investors to register as owners of Phase 2 businesses in order to become part of pending local licenses, which can then be used to obtain provisional state licenses. In order to register as a new owner of an existing Phase 2 business (with anywhere up to 100% equity in the business), potential new owners need to go in person to the DCR with the original owners to personally submit the change in ownership application. Under this flexible process, investors can team up with applicants mid-way through the licensing process to provide capital to startup operations and get a successful business going as soon as possible.
Our law office has helped many people with investing in cannabis and raising capital for their cannabis business. Contact us today for a consultation if you are interested in learning more about the LA cannabis market.