The commission recently issued six licenses, two-Class 1 licenses (100,000 sq.ft.) and four-Class 2 licenses (50,000 sq.ft) to manufacture low-THC cannabis oil in Georgia. Senate Bill 195 permits those awarded production licenses to also possess up to five retail dispensing licenses, allowing for a total of 30-medical marijuana oil dispensary licenses to be issued.
Contracts for these producers with the state indicate a Class 1 license will cost $200,000 and will need to be renewed annually for a fee of $100,000. The Class 2 production license will cost $100,000 with a $50,000 annual renewal fee.
The Georgia Access to Medical Cannabis Commission oversees and regulates licensing of medial cannabis production. This is an extremely restrictive limited-THC market capped at 5%. Even for CBD, flower, edibles, and vaping are prohibited, ranking this amongst the least attractive medical markets.
The six companies who were awarded a license are permitted to cultivate/process low THC oil (for now) and have the ability to open five retail stores. Given the extremely limited license structure of a state with nearly 11 million people, the winners hold extremely valuable licenses. It will take significant capital to build out the infrastructure for a market that will not be able to realize the real profits until the state relaxes restrictions on THC content and products that can be manufactured and sold.
Watch for the Peach State to ultimately relax THC content restrictions and medical conditions.