Virgin Islands Sets Fall 2026 Target for Legal Cannabis Retail Launch

CHARLOTTE AMALIE – The U.S. Virgin Islands Office of Cannabis Regulation has accelerated its timeline for the start of licensed Cannabis sales, with executive director Joanne Moorhead stating that regulated retail operations are now expected to begin this fall.

This represents a shift from earlier projections. In mid-January 2026, Moorhead indicated that sales could commence by the end of the year, with conditional approvals already issued for some dispensary applications following reviews.

The updated target of autumn 2026 follows a Government House press briefing, where Moorhead highlighted an agreement with CannaFirst Financial, a division of Merchants & Marine Bank, to offer pre-operational financing and compliant banking services to licensed cultivators, manufacturers, and retailers. CannaFirst, which provides specialized services to Cannabis businesses nationwide, was identified through efforts by the Lt. Governor’s Office to address a key barrier in the territory’s market rollout – access to financial infrastructure under federal constraints.

The territory legalized adult-use Cannabis in January 2023 via the Virgin Islands Cannabis Use Act, combining it with the existing medical framework. Licensing has progressed in phases, with cultivation permits issued conditionally starting in late 2025, manufacturing applications accepted through December 2025, and dispensary reviews advancing into early 2026. No active retail sales have occurred yet, despite the legal framework being in place for years.

The involvement of a specialized banking partner like CannaFirst addresses the persistent challenge faced by Cannabis operators in jurisdictions without broad federal reform, where traditional banks are often either hesitant or avoid the sector due to regulatory risks. This step could enable more applicants to meet facility readiness and compliance requirements needed for final licensure and operations.

While the accelerated schedule signals momentum, actual sales will depend on completing inspections, final approvals, and operational setup for approved licensees. The Office of Cannabis Regulation continues to emphasize a merit-based, limited-license approach that prioritizes local participation and regulatory compliance.

As the U.S. Virgin Islands moves toward its first regulated Cannabis transactions, the partnership with CannaFirst Financial underscores the practical steps required to bridge legislative authorization and market reality in a field still navigating federal banking limitations.

Investors looking to capitalize should keep a close eye on these developments. The territory’s strong tourism base, drawing millions of U.S. visitors annually, positions it for potentially outsized retail demand once dispensaries open, including opportunities in Cannabis-integrated wellness, culinary experiences, and hospitality offerings that could differentiate it from mainland markets.

Early license approvals and operational milestones this fall will offer clearer signals on market entry timing, competitive dynamics, and revenue potential in one of the few remaining U.S. jurisdictions launching a fully integrated adult-use program.