A secondary market for medical marijuana licenses is budding in Nevada.
Since the state’s governor signed a law in June allowing the transfer of such permits, companies and entrepreneurs throughout the state have been seeking to buy them up. The state has yet to put the final touches on the laws regulating the market, and the law allowing such transfers won’t take effect until October.
According to Scott Boyes, the chief executive officer of Canadian Bioceutical Corp., there are “a fair number” of companies that have already put up licenses for sale. Boyes says he is seeking to buy or partner with four or five such firms.
With the potential for recreational marijuana to be legalized in Nevada in the next few years, and the state’s generally beneficent regard for the industry, the secondary market for licenses could be extremely lucrative. One cultivation license was reportedly for sale at $4 million, and Boyes says he spoke with a company that was selling its dispensary license for $10 million.
Whether cultivation or dispensary licenses are more valuable is up for debate. If recreational marijuana is legalized, cultivation licenses will certainly go up in value. Of course, a firm that holds all three permits–cultivation, dispensary, and processing–is in the best position to make a quick sale right now.
Photo Credit: Prayitno
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