The Virginia Senate and House of Delegates, both under Democratic control, passed legislation on February 5, 2021 to legalize use and possession for those 21 years and older.

Senate Bill 970 is a 2025 proposal to legalize cannabis for adult-use. If the bill is successful, Virginia would begin accepting license applications in September of 2025 and we could see adult-use sales beginning mid-2026. The bill was introduced by Senator Aaron Rouse (D) on January 6th, 2025. The bill was passed through the senate on January 31st, 2025, and is now waiting for approval in the house before moving onto Governor Glenn Youngkin's desk. The House of Representatives put forward House Bill 2485 that would also legalize adult-use cannabis sales. Both bills are expected to make it through the house and it will likely be up to the Virginia governor to make the final decision.

Plans to roll out adult-use sales have so far been thwarted since Governor Glenn Youngkin (R) took office in 2022 and has stated he will not support any legislation that aims to legalize the sale of adult use cannabis. Similar legislation was vetoed by Gov. Youngkin in 2024 but lawmakers are hoping the updated legislation may persuade Youngkin to change his mind. The revised bill would allow only the current medical-use operators to sell adult-use products until 2030. This would provide a massive advantage to the current operators in VA, but the hope is that it will make Gov. Youngkin feel more comfortable about creating a safe marketplace for the citizens of Virginia.

As of today, adults 21 and older may legally possess up to one ounce in public but are not allowed to purchase it for recreational use. While adult use sales are prohibited, individuals are allowed to grow up to four cannabis plants in their homes. The state allows cannabis extracts only, such as vapes, edibles, topicals, etc., limited to 10 milligrams of THC per dose. Vertical integration is required for the five licenses permitted, allowing six retail locations per operator.

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July 2024 | Verano acquired Columbia Care Eastern Virginia for $90MM

July 2022 | Verano Holdings announced plans to acquire Pharmacann Virgnia (MedMen) for $5MM

May 2021 | GTI announced plans to acquire Dharma Pharmaceuticals

June 2020 | Virginia stripped financially troubled MedMen of its license for not moving forward on its Staunton-based location

September 2019 | Jushi acquired 62% of Virginia-based pharmaceutical processor Dalitso

With an attractive population density like other states in the northeast, this market has real potential. The Mother of States has been given a vote of confidence by some of the largest MSOs, including AYR, Jushi, Green Thumb Industries, The Cannabist Company, and Verano. Other MSOs will be looking to enter the state but with caution as legalization attempts have stalled.

The proposed legislation would provide a massive advantage to the six operators mentioned above as they would essentially be operating in a oligopoly. If you can get your hands on one of the six VA licenses, you're setting yourself up for success.

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