Adult-use cannabis sales could finally launch in Virginia by Jan. 1 – almost six years after legalization – if Gov. Abigail Spanberger signs a bill lawmakers sent to her desk earlier this month.
But some Virginia cannabis advocates want the launch delayed even further so small businesses can enter what could be a $1 billion market – and aren’t beaten out by large marijuana multistate operators from the beginning, according to WVIR.
Spanberger, a Democrat elected to her first term in November, is expected to sign the bill, finally ushering in Virginia’s adult-use cannabis sales.
Will small businesses compete in Virginia’s adult-use cannabis?
Currently, sales are poised to begin only at holders of one of five vertically integrated medical cannabis permits.
Chelsea Higgs Wise, executive director of the social-equity advocacy group Marijuana Justice, told WVIR she is “really hopeful” that Spanberger will consider “practical changes” to the start date.
Failing to do so could squash competition in Virginia’s market from the beginning, she said.
“You might walk into a dispensary and see 26 to 39 brands on the shelf,” she told WVIR.
“And it may look like, wow, there’s competition here. But if you look back, you’re going to find out that they’re owned by three to five different companies.
“And none of them are owned in Virginia.”
Where will adult-use cannabis be available in Virginia in 2027?
Under the bill sent to Spanberger’s desk, existing medical cannabis operators must pay a $10 million fee to enter the recreational market.
Such “conversion fees” have been charged to existing medical operators in other states.
Other key features of Virginia’s adult-use marijuana framework include:
- A 6% state cannabis tax, with local governments permitted to add up to 3.5%
- A hard cap of 350 retail cannabis licenses available statewide
- Increasing personal possession limits from 1 ounce to 2½ ounces
An affiliate of Millstreet Credit Fund, a Boston-based hedge fund, announced its intention to purchase one of the permits for $130 million.
The other four are owned by:
- Former creditors of Miami-based MSO Ayr Wellness, which had yet to open a dispensary and sold off its assets in a fall foreclosure sale
- Boca Raton, Florida-based Jushi Holdings
- Chicago-based Green Thumb Industries
- Chicago-based Verano Holdings Corp.
