Missouri Archives - Green Market Report

Debra BorchardtSeptember 20, 2021
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4min800

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) paid $1.35 million for a property in Missouri and entered into a long-term lease with CPC of Missouri – Smithville, LLC (CPC), a subsidiary of Calyx Peak, Inc. (Calyx). CPC is expected to construct approximately 83,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $26.72 million. IIP’s total investment in the property is expected to be $28.25 million. CPC said it intends to operate the property upon completion of construction as a licensed cannabis cultivation and processing facility.

“We are excited to announce this new long-term real estate partnership with Calyx, expanding our footprint into Missouri as our 19th state,” said Paul Smithers, President and Chief Executive Officer of IIP. “Calyx has developed a strong reputation for quality, award-winning cannabis products in California, and we look forward to working closely with the Calyx team in coming months on the development of this new state-of-the-art facility in Missouri, as Calyx expands its operational platform to meet the tremendous growth in demand from patients throughout the state.”

Calyx currently operates a 235,000 square foot cannabis cultivation facility in California, and expects to begin construction on a dispensary location in southern California in the near future. Calyx also has a Tier 3 cultivation license and a provisional adult-use dispensary license in Massachusetts, and expects to open a dispensary in the West Plaza neighborhood of Kansas City, Missouri later this year. Founded in 2016, Calyx is headquartered in Massachusetts and plans to be vertically integrated in three states by the end of 2022.

“We are thrilled to enter into this long-term real estate partnership with IIP for the development of this new facility in Missouri,” said Erin Carachilo, CEO of Calyx, and Lee Hoffman of CPC. “While less than one year since the launch of Missouri’s medical cannabis program, we have witnessed a tremendous rate of adoption by patients and growth in sales throughout the state, and look forward to completing the development of this facility, which will be designed with next-generation systems in a highly controlled environment that will enable us to bring our premium, diversified genetics at scale to Missouri patients.”

Missouri began legal medical cannabis sales in October of 2020, and regulated medical-use sales have grown rapidly since then, with total sales in August 2021 alone of approximately $22 million, according to the Missouri Department of Health and Senior Services. As of August 31, 2021, there were over 177,000 patient applications and 5,800 caregiver applications in the state. Missouri’s regulations provide for numerous qualifying medical conditions for treatment with cannabis, including, among others, cancer, epilepsy, PTSD, HIV/AIDS, terminal illness, Alzheimer’s and any chronic medical condition normally treated with prescription medication that can lead to dependence. In addition, petitions for Missouri voters to approve the adoption of an adult-use cannabis program are targeting the November 2022 ballot.

 


StaffOctober 10, 2019
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3min601

The state of Missouri passed Amendment 2 in November of 2018, legalizing cannabis for medicinal use. 

The state received $13 million dollars in fees from those hoping to become medical marijuana businesses during their 2019 application period. At the beginning of 2019, the Missouri DHHS began accepting what they call “pre-license fees.” These fees are nonrefundable and range from $6,000 to $10,000. It is essentially the permit to apply for a medical marijuana business license in Missouri. 

There were 2,163 total applications received by the deadline. Only 348 total licenses will be awarded, leaving the majority of applicants out thousands of dollars with no business license to show for it. The new law allocates a certain amount of licenses for medical marijuana dispensaries, cultivation facilities, manufacturing facilities, and testing facilities. Amendment 2 calls for no more than 24 medical marijuana dispensary licenses to be awarded in each of Missouri’s eight congressional districts, totaling 192 across the state. Missouri will be allowing up to 10 testing facilities throughout the state, though the law just requires at least two. 

There was no limit to how many applications the state could receive, regardless of the limited number of licenses that will be awarded. The state of Missouri says that this money will be used towards general fees associated with the startup costs of the new industry, with the leftover money going to veteran’s affairs. 

Even with this claim, there are many people worried that this was a greedy move by the state. 

Roughly 1,200 of these total applications were received in the final three days, including 800 in the final 24 hours. Additionally, Missouri allowed more than 100 applications to be submitted after the deadline due to claims of technical glitches from potential applicants. This comes much to the dismay of those applicants who paid thousands of dollars in fees months in advance, as well as dedicating hundreds of hours to the tedious application process. 

Missouri will award licenses at the end of the year. Once the businesses are established, they have renewal fees ranging from $3,000-$25,000 in order to stay in operation. 

Guest Contributor:

Kaitlin is a 23-year-old wife and mom to three children. Writing has always been a passion of hers but she never dreamed she would be able to turn it into a career. She is passionate about her Christian faith, living a healthy lifestyle and sharing the benefits of medicinal cannabis


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