Kentucky’s Office of Medical Cannabis saw a surge in business license applications, receiving over 700 submissions in the first three days of this week, just ahead of the Saturday deadline.
This sharp increase contrasts with the 28 applications received throughout July. To date, more than 1,000 applications have been submitted by businesses aiming to operate as medical marijuana dispensaries, cultivators, processors, or safety compliance facilities. This number is expected to rise further before the deadline at midnight on Saturday.
Starting January 1st next year, licensed dispensaries will be allowed to sell cannabis products to qualifying patients. The state will award these licenses in October through a lottery system.
Dispensary licenses are in high demand, with 860 applications submitted by Wednesday evening. Kentucky will grant a maximum of 48 dispensary licenses, with at least four distributed across each of the state’s 11 licensing regions. Jefferson and Fayette counties will receive two licenses each, while other counties may receive no more than one.
Applications have been particularly concentrated in the regions including Jefferson and Fayette counties, which collectively received 331 applications. The Kentuckiana region, covering Louisville and surrounding counties, accounted for 153 applications, with 102 in Jefferson County. The Bluegrass region, including Fayette County and 12 neighboring counties, submitted 178 applications, with 81 from Fayette County. The Mountain region, covering 18 counties in eastern Kentucky, saw the fewest dispensary applications with just 13.
As of Wednesday night, 151 applications had been submitted by businesses seeking to become licensed medical marijuana cultivators. These applications are divided into three tiers based on the size of the indoor cultivation area: Tier 1 for less than 2,500 square feet, Tier 2 for less than 10,000 square feet, and Tier 3 for less than 25,000 square feet. Hopkins County led the state with 22 cultivator applications.
By Wednesday evening, 58 applications had also been submitted for processor licenses, which allow businesses to prepare cannabis products for sale in various forms at dispensaries. Kentucky will issue a maximum of 10 processor licenses. Medical cannabis dispensaries in the state can sell products such as edibles, oils, tinctures, vapes, and raw plant material, though smoking cannabis remains illegal.
Three applications have been submitted for safety compliance facility licenses, which will not be capped by the state. These applications come from businesses in Louisville, Lexington, and Nicholasville, where local ordinances allow medical marijuana businesses.
Applicants for cannabis business licenses must demonstrate financial capability and pay application fees. Dispensary and processor applicants must show $150,000 in capital and pay a $5,000 fee. Cultivators must meet capital requirements of $50,000 to $500,000, depending on tier, with fees ranging from $3,000 to $20,000.
If all 1,076 applicants paid their fees, the state would receive over $6 million. Additional fees will apply to those awarded licenses after the state lottery in October.
