How likely is it that small-time entrepreneurs will be able to claim a piece of the pie? It looks like you need a huge bankroll to get in the game.
A group of editors from the Marijuana Business Daily are offering an 8-hour crash course in Philly with workshops offering guidance to aspiring players who want to know how the marijuana business works. The Philly crash course is September 23.
The Philadelphia Inquirer interviewed Chris Walsh, editor at MBD about cannabusiness prospects and here are some of the Q&A’s. Check out the answer to the last question- Nevada is mentioned for mergers and acquisitions now that the industry is up and operating. This course will be offered in Las Vegas November 15. Click here for details.
Q: How likely is it that small-time entrepreneurs will be able to claim a piece of the pie? It looks like you need a huge bankroll to get in the game.
A: To be considered for a growing or processing license, you’ll need at least $2 million in capital, $500,000 on deposit, and a non-refundable $5,000 application fee. Winners will need to pony up an annual $200,000 for the permit.
The barriers for a dispensary aren’t as high, but applicants still need $150,000 on deposit plus startup costs and $30,000 every year for a permit.
In retail and cultivation, if you want one of the licenses you’re going to have to line up investors. The average Joe is going to have a hard time starting a marijuana-related business that touches the plant. People also need to be ready for delays.
Q: What effect is marijuana expected to have on local real estate markets?
A: In Colorado, in Denver, all the warehouse districts are full, many of them with green house growing operations. People are becoming more savvy. When a jurisdiction is about to legalize, they’re taking close looks at where to place potential retail dispensaries. In some cities marijuana companies are going where other failing or flailing industries used to set up shop.
Q: It seems to be an article of faith among ganjapreneurs that the feds will decriminalize cannabis soon. How likely is that?
A: Hillary Clinton has said she’d like to see it rescheduled. Trump is all over the board on everything, so who knows. Congress is slowly coming to see the public support and potential size of the market. The wave has started and it will crash over D.C. They’ll have to change some of the laws, either a federal legalization or gradual rescheduling or some law that lets states clearly decide how they’ll handle this. My guess is sometime in the next five years.
Q: What are the biggest concerns facing the industry?
A: The fear that it will be rescheduled and Big Pharma, Big Tobacco or Big Alcohol will sweep in and dominate the market.
Q: Pennsylvania has 175 licenses up for grabs. One of the proposed regulations allows for transferring, selling those licenses. Is that common?
A: You can sell and transfer licenses in some other states. There’s already mergers and acquisitions activity going on in Nevada. They legalized a long time ago, but just started up the industry. Some other states are really restrictive.
CRASH COURSE COMING TO LAS VEGAS
The Crash Course in Cannabusiness presented by Marijuana Business Daily in association with the 5th Annual Marijuana Business Conference & Expo will be in Las Vegas Nov. 15.
Click here for more information.
Read more at philly.com.