(This story has been updated to note that some of Arizona’s licenses went to applicants who partnered with existing marijuana businesses.)
The Arizona Department of Health Services awarded 26 coveted social equity cannabis business permits during a long-awaited license lottery.
At least 10 of the permits went to applicants who partnered with existing marijuana companies, The Arizona Republic reported.
Critics had warned such a scenario could happen.
Out of 1,301 applications, the winners on Friday were:
- A.M.Y. Investments II
- Arizona Tree Equity 2
- AZ Flower Power
- Blue Palo Verde 1
- Curious Cultivators I
- Desert Boyz
- Dynamic Trio Holdings
- Green Lightning
- Grunge Free
- Higher than High I
- Joint Junkies I
- Juicy Joint I
- Life Changers Investments
- MCD-SE Venture 25
- MCD-SE Venture 26
- Pleasant Plants I
- Swallowtail 3
- Woodstock 1
- Your Bright Horizon 117
- Your Bright Horizon 127
- Your Bright Horizon 197
According to the Republic, about a third of the applicants partnered with existing marijuana companies. The existing operators included:
- The Mint, which partnered with the winners of two licenses.
- Copperstate Farms, which teamed with the winners of three permits.
- Mohave Cannabis, which partnered with the winners of five licenses.
Social equity licenses in Arizona have been the subject of multiple lawsuits.
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They will automatically be valuable, given that Arizona is offering only 169 vertically integrated marijuana business permits for the entire state.
One lawsuit, by Black Seed, is pending in court.
And, because there was such an immense applicant pool, further litigation is a near-certainty.