Alabama Medical Cannabis Commission Revamps Licensing, Leaving Verano Holdings Out

LOS ANGELES— The Alabama Medical Cannabis Commission has overhauled its initial round of business licensing, with some of the original winners, including Verano Holdings Inc., ending up on the losing side. The reshuffling has led to confusion and frustration, with Verano declaring its intent to pursue legal remedies.

The Licensing Reshuffle

In June, Verano Holdings, a prominent multi-state operator (MSO), won one of five “integrated” permits that allow cultivation, processing, and retail in Alabama. CEO George Archos had praised the opportunity as an excellent step for Verano to expand its footprint in the South.

However, the commission abruptly halted the licensing process due to potential scoring discrepancies and subsequent legal issues. On Thursday, the commission replaced Verano with Insa Alabama LLC, keeping the other four original integrated license winners.

Verano’s Reaction

Verano expressed extreme disappointment with the decision, stating that the company received “the highest score of any applicant across the entire pool” and calling the decision “random, confusing, and without merit.” The company affirmed its commitment to “pursue all options to defend our rightfully earned Integrated Facilities License, including legal remedies.”

Verano emphasized its strong track record in operating retail and cultivation facilities in 13 states, and criticized the commission’s actions as “arbitrary and capricious.”

Other Changes and Winners

The Illinois-based Verano wasn’t the only entity to lose in the permit redo. Alabama Secure Transport lost a transporter license, James Gang Dispensary was suggested but denied a cultivation license, and ALA Labs was refused a marijuana lab testing license.

The commission selected only 24 winners out of 90 eligible license applications, divided into categories:

• Integrated: Insa Alabama LLC, Flowerwood Medical Cannabis LLC, Southeast Cannabis Company LLC, Sustainable Alabama LLC, TheraTrue Alabama
• Cultivation: Gulf Shore Remedies LLC, Pure by Sirmon Farms LLC, Twisted Herb Cultivation LLC, Blackberry Farms LLC, I AM FARMS, Greenway Botanicals LLC, CRC of Alabama LLC
• Processors: Enchanted Green LLC, 1819 Labs LLC, Organic Harvest Lab LLC, Jasper Development Group Inc.
• Dispensaries: Yellowhammer Medical Dispensaries Inc., CCS of Alabama LLC, RJK Holdings AL LLC, Statewide Property Holdings AL LLC
• Transporter: Tyler Van Lines LLC, International Communication LLC, XLCR Inc.
• Testing lab: Certus Laboratories

A Step Towards Adequate Disbursement

At the close of the meeting, a commissioner mentioned that officials were going into recess to ensure that minority licenses and regional disbursement were adequately awarded.

The sudden change in the licensing process has introduced uncertainty into Alabama’s burgeoning medical cannabis industry. The decisions have raised questions and frustrations among stakeholders, with legal challenges now looming on the horizon. It will be critical for the commission to provide clarity and transparency as it navigates these complex issues, balancing the interests of operators, patients, and regulatory obligations.