The Ohio Medical Marijuana Control Program has received 104 applications for 40 processor licenses, including 19 of the 24 companies already awarded cultivator licenses, the Dayton Daily News reports. One of the applicants, CannAscend, was rejected for a cultivator license and has since threatened to sue the state.
One cultivator applicant, PharmaCann Ohio LLC., has already sued the state over its denial. In the court filing, the company argues that the “racial quota” provisions in the state’s medical cannabis law runs afoul of the state Constitution’s equal protection clause.
Jimmy Gould, chief executive of CannAscend, unveiled plans last week to put adult-use legalization to voters in 2018. Gould also spearheaded the failed 2015 ballot initiative that many advocates rejected due to fears it would create a monopoly in the nascent industry. The legislature passed the medical cannabis law last year.
Processor applicants had to pay a $10,000 application fee and, if approved, will have to pay another $90,000 certificate of operation fee. License renewals cost $100,000 annually. Applications are scored on operation plans, quality, security, and finances.
Regulators can approve the processor licenses anytime before Sept. 9 – the state regulations require the medical cannabis program to be fully operational by September 2018.