Delaware’s fund for boosting social equity in the state’s emerging legal cannabis industry is up to a reported $6.2 million. Delaware already permits medical cannabis sales in the state, and in the not-too-distant future adult-use cannabis sales will also be permitted. Delaware is pursuing a plan to allow the state’s medical cannabis industry to apply for dual-use licenses in order for them to also sell recreational cannabis products.
“Beyond accelerating what Coupe acknowledges has been a slow, laborious process in creating regulations and a licensing process, allowing conversion licenses could pump up to $4.2 million into a new fund to help so-called social equity applicants, who are slated to receive 47 of the 125 licenses. The $4.2 million would come from application fees for conversion licenses.” reported WHYY in its local coverage.
“Lawmakers also allocated an additional $2 million into the fund for aspiring social equity cannabis entrepreneurs.” WHYY also stated.
Last year, Delaware approved adult-use cannabis legalization, including retail sales. Part of Delaware’s legalization model involves issuing social equity business licenses. Delaware has the following qualification criteria for social equity business licenses:
- Social equity applicants must have 51% ownership and control of the business
- Must have resided for at least five out of the last 15 years in a disproportionately impacted area (map expected this summer)
- Previously convicted of, or found delinquent of, a cannabis-related offense under Delaware law before April 23, 2023 (with some exceptions)
- Had a parent, legal guardian, child, spouse or dependent who was convicted of or found delinquent for a marijuana-related offense under Delaware law before April 23, 2023 (with some exceptions)
Out of the 125 adult-use cannabis business licenses to be issued in Delaware, 47 of them will be social equity licenses. The Delaware social equity application fee is offered at the discounted rate of $1,000, and the two-year social equity and microbusiness licenses issued by the Delaware Office of the Marijuana Commissioner are offered at a discounted fee of $4,000.
As of fall 2023, Delaware’s medical cannabis program had roughly 29,000 patients enrolled, and six different companies currently operate 12 licensed medical cannabis dispensaries in the state. In 2023, Delaware’s legal medical cannabis industry sold over $53.8 million worth of medical cannabis products.
“This included smokable flower sales of $28.3M, which represents 2,625,742.04 grams (5,788.8 pounds) at an average price of $10.80 per gram. Smokable flower was the most popular marijuana product type, making up 52.3% of purchases, followed by inhalable products at 29.2%, edible products like gummies and baked goods were 13.6% and topicals and tinctures were 4.9% of sales.” the Delaware Office of the Marijuana Commissioner stated in a 2023 report.
In 2023, Delaware’s medical cannabis patients “spent an average of $3,303 per year on marijuana products” according to the 2023 report.
“When that is compared to the conservative, projected adult use recreational purchase population of 85,000 the estimated annual sales would be $281M with potential tax revenues of $42M.” the report also stated.