MJ Biz report
Buying cannabis licenses on secondary market more of a sure bet than applying for state business permits
As the marijuana industry matures and companies expand, many smaller, original growers and retailers are putting their licenses up for sale through the secondary market – much like selling a house.
The growing trend is giving cannabis entrepreneurs a new avenue to secure a valuable business permit versus going through the state application process, which can prove costly and time-consuming. Moreover, there’s no guarantee an applicant will secure a license.
“The average group will spend $300,000 to $1.5 million pursuing the license and not get it,” said Avis Bulbulyan, CEO of Siva Enterprises, a Glendale, California-based cannabis business development and solutions firm.
“On the secondary market, they will overpay but know they’re going to get the license. Then you can go raise your capital and you can take on $40 million and know you’re investing in a sure thing because it’s an issued license.”
More on how cannabis and real estate are becoming increasingly entwined in states like California