Nevada deems 60% of cannabis social equity lounge applicants ineligible

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The Nevada Cannabis Compliance Board has notified six of 10 applicants for social equity consumption lounge licenses that they failed to advance to the next stage in the process.

The six, who were selected by a random computer drawing in 2022, were informed they are not eligible based on residency criteria and will not move ahead in the process, The Nevada Independent reported.

The six ineligible applicants are:

  • City Lights Production, unincorporated Clark County.
  • GGCPA SE, Nye County.
  • GGGCPA SE 3, unincorporated Clark County.
  • Lyxe Consulting, Las Vegas.
  • NV Cloud 420 Lounge, Las Vegas.
  • Royal Tree TLC, Las Vegas.

The social equity licensing requirements include “residency in an area significantly impacted by poverty and high arrest rates,” according to a Cannabis Compliance Board (CCB) news release.

However, the Independent reported, four Las Vegas-based social equity applicants will move forward in the consumption lounge licensing process:

  • Greenwood Investment Group.
  • MedSnSin.
  • N&D Enterprises.
  • Sunflower Compassionate Co.

Thirty applicants entered the original pool for social equity licenses in 2022, and on Nov. 30 of that year, a computer randomly selected 10 applications for review.

The CCB also said it plans to return the $2,500 application fee for applicants not proceeding in the licensing process.

Additionally, the CCB said it is contacting eight applicants who meet the residency requirement but weren’t selected in the 2022 random drawing to learn whether they want to be entered into a second drawing to replace the six companies found ineligible.

The CCB in February issued the first license to a cannabis consumption lounge to Smoke and Mirrors in Las Vegas.