Pennsylvania’s medical marijuana program isn’t even operational and cultivation licenses already are being shopped around.
The Philadelphia Inquirer obtained a confidential prospectus that includes an offer to sell 100% of Franklin Labs – one of 12 MMJ cultivation license winners – for $20 million.
The newspaper confirmed with the company’s CEO that the license is for sale, but the state has explicitly said no permit may be sold or transferred without approval from the health department.
To obtain its Pennsylvania cultivation license, Franklin Labs had to pay a $10,000 application fee and $200,000 for the actual permit and prove it had $2 million in capital on hand. The grower also faces a $10,000 annual renewal fee.
Franklin Labs – whose grow operation is housed in a 47,000-square-foot former beverage warehouse in Reading – was approved for cultivation in the southeastern part of the state, The Inquirer reported.
The company is also vying for a special clinical research license – unique to Pennsylvania’s MMJ market – that would allow it to research marijuana’s benefits and includes licenses for cultivation and six dispensaries, according to the newspaper.
The rules for the clinical research license haven’t been finalized, but eight companies would pair with medical schools to conduct research.
Pennsylvania’s medical cannabis program appears to be on schedule, despite a few legal hiccups – appeals and challenges – that could slow its progress.