On April 23, 2023, Delaware became the 22nd state to legalize adult-use cannabis. While sales will not begin until late 2024, there is much to look forward to.
The state will issue 20 open cultivator licenses, 20 social equity licenses, and 10 miocrobusiness cultivation facility licenses.
The state will issue 15 open retail licenses and 15 social equity retail licenses.
Applications will start being accepted on August 1, 2024.
There is no notable activity at this time.
Delaware is shaping up to be a prime acquisition market thanks to its middle-of-the-road population density and proximity to neighboring states with a large MSO presence. With a profitable revenue-to-license ratio and Columbia Care already building a presence, other MSOs will likely take action when they have excess resources to focus beyond their core strategic states.
With an already attractive medical market, there is no reason to believe that the introduction of adult-use sales will bring anything but an influx of sales. Open retail and cultivation licenses along with no caps on cultivation or the number of licenses an operator can hold are creating prime opportunities in the state. MSOs should look to take advantage of these conditions when applications open in 2024.
*Limits exist on the social equity licenses with 10 licenses being issued for cultivators growing less than 2,500 sq ft of canopy and 10 licenses for social equity applicants growing more than 2,500 sq ft.