Marijuana Business Magazine February 2019

Marijuana Business Magazine | February 2019 8 Oklahoma’s Liberal Regulations Yield MMJ Growth O klahoma’s business-friendly approach to medical marijuana generated sizzling growth in license approvals during the state program’s first months of operation. Oklahoma voters approved State Question 788 in June 2018, clearing the way for the Sooner State to become one of the nation’s least-restrictive MMJ markets. For patients, a physician's recommendation is required to obtain a patient license. But there are no qualifying conditions, no limits on allowable products and provisions for home cultivation. On the supply side, the state has not capped the number of dispensaries, growers or processors, has intentionally kept licensing costs low and has barred counties and municipalities from developing their own regulations to keep access even across the state. While the low barriers to entry have created unparalleled opportunity, the highly competitive market raises concerns that product oversupply will lead to severely diminished wholesale prices—negatively impacting growers—while prolific dispensaries may ultimately struggle to earn enough traffic to stay afloat. By Maggie Cowee Cannabis bythe Numbers | Data Analysis Sources: Oklahoma Medical Marijuana Authority, U.S. Census Bureau, Marijuana Business Factbook, state medical marijuana websites Cost to obtain a new grower, dispensary or processor license in Oklahoma. In Nevada, MMJ dispensaries must pay $30,000 for a new license, while a new cultivation license costs $5,000. $2,500 $150M-$250M Marijuana Business Factbook 2018 estimates for annual Oklahoma MMJ sales once the market has matured in three to five years. Number of patient licenses approved as of mid-January. That's an average of 6,850 patients added per month in the four-plus months starting Aug. 25, the first day patient licenses were approved. 30,835 1,385 Number of grower licenses issued by mid-January. Illinois—one of the most populous states in the U.S. with an MMJ patient count of more than 50,000—had 21 active cultivation licenses as of January.