In 2020, the green-wave crashed into South Dakota making it the first state to simultaneously legalize medical- and adult-use cannabis. Further, in February 2021, the House Commerce & Energy Committee approved a bill to let marijuana and hemp businesses use banks.

The Cities of Sioux Falls and Rapid City both released licensing applications for businesses to apply to operate medical marijuana dispensaries or testing facilities within the city. Any interested business must obtain a license from the City, a State registration certificate issued by the South Dakota Department of Health, and a certificate of occupancy from the City. There will be a lottery for the selection of the dispensary licenses.

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There is no notable activity at this time.

With a population of ~900K and adult-use legislation passed, attractive assets will be based on each municipality. It’s hard to see many scaled and profitable operations here. Look for retail with strategic moats around Bass Pro Shops and the local minor league team.