Minnesota became the 23rd state to legalize cannabis for adult use in May 2023. Sales began in August 2023, with adult being allowed to possess and travel with 2oz of flower, up to 8g of concentrate, and 800mg of THC edible products. There is a 10% cannabis tax on all sales except for medical use sales where there is no tax. There is no opt-in/opt-out structure so local governents cannot bans sales, but they can limit the number of retailers to 1 per 12,500 residents.
January 2022 | Green Thumb entered Minnesota market through its acquisition of LeafLine Industries for more than $150MM
As adult use ramps up in the state, regulators have stated that more licenses will be issued. As regulation becomes more clear, operators should look to enter the state as sales have been strong despite previously restrictive MMJ qualification requirements. Additionally, Minnesota is the one of the few states in the Midwest to have legalized adult use. Operators can expect that surrounding states will slowly follow suit and can use Minnesota as a foothold.
There is no new regulation in place yet for the number of licenses the state will issue, but they have made it clear they will expand the number of licenses that are currently issued.