An applicant for a medical marijuana dispensary license in Rhode Island dropped its appeal against regulators, a move that likely will allow a lottery for a retail license on the eastern side of the state to proceed.

Atlas Enterprises had applied to open a dispensary in Newport but was denied on the grounds that it failed to provide evidence of zoning compliance, among other reasons.

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A Newport ordinance does not allow dispensaries, East Providence-based TV station WPRI reported.

When Atlas appealed the decision in May, Rhode Island regulators halted a lottery to license six new medical cannabis stores in Zone 6.

But the state went ahead with licensing dispensaries in the other five zones.

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It is still unknown when the lottery for Zone 6 will take place.

Three applicants initially qualified for the license, but two of them have since been disqualified because of zoning variances, according to WPRI.

Mother Earth Wellness, the remaining applicant in Zone 6, has proposed opening a dispensary in Pawtucket.