More than 700 applicants have submitted applications seeking approximately 4,000 adult cannabis dispensary licenses in the State of Illinois.
CHICAGO— The Illinois Department of Federal and Professional Regulation reports that statewide adult-use cannabis sales from the first five days of legalization (Wednesday Jan. 1 through Sunday, Jan. 5) totaled $10,830,667.91.
Dispensaries across the state rendered 271,169 transactions over the five-day period. On Thursday, Jan. 2, the department concluded the first round of applications for new dispensary licenses and reports that a preliminary count shows more than 700 applicants submitted applications seeking almost 4,000 licenses.
More than 600 of the applicants identified themselves as qualifying for social equity applicant status. The department will announce by May 1 up to 75 new dispensary licenses.
"The successful launch of this new industry is a historic development for our state that will benefit the very communities that have been disproportionately impacted by the failed war on drugs," says Toi Hutchinson, senior advisor to Governor J.B. Pritzker for Cannabis Control. "As we move into the next phase, the Pritzker administration is proud to see the robust interest in dispensary ownership from social equity applicants, and we encourage them to apply for $30 million in loans that we have available to reduce the capital barriers to entry."
To defray the start-up costs associated with entering the industry, social equity applicants have access to a low-cost loan fund, primarily funded by existing dispensaries, and are allowed 180 days from the license award date to identify a physical location for the dispensary. Ownership limitations are also in place to protect market share for new applicants. Following the awarding of the next round of dispensary licenses, the state will also conduct a disparity study to ensure the market reflects the equity goals of the historic legislation.
A total of 25% of cannabis sales tax revenues will support the Restore, Reinvest and Renew (R3) program, which aims to address the impact of economic disinvestment, violence and the historical overuse of the criminal justice system, state officials note. The Department of Revenue expects to have a tax revenue estimate by the end of February, when initial tax payments from dispensaries are due.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
