Two of Connecticut’s largest cannabis companies owe the state a combined $2 million after failing to open up retail outlets within the statutorily mandated time frame.
Cannabis grower Theraplant owes the state $1.5 million, Department of Consumer Protection spokesperson Kaitlyn Krasselt confirmed. Zen Leaf in Meriden, owned by cannabis giant Verano, owes $500,000.
There is a $3 million fee to convert from a medical cannabis producer or medical cannabis dispensary to a hybrid medical and recreational cannabis facility. That fee can by law be reduced if the owners open two joint ventures with individuals approved by the state’s Social Equity Council.
Zen Leaf Meriden and Theraplant were notified “that they did not meet the deadline or requirements to pay the reduced license conversion fee,” Krasselt said.
Every medical cannabis dispensary and producer that converted to a hybrid recreational business is entitled to the reduced conversion fee. Krasselt confirmed that Theraplant and Zen Leaf Meriden are currently the only two companies that did not make the 14-month window.
Other cannabis companies that converted later than Zen Leaf Meriden and Theraplant but have not yet opened equity joint ventures may be invoiced when the 14-month window expires.
A Theraplant representative did not return requests for comment.
H/T: https://www.stamfordadvocate.com/
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