MINNEAPOLIS (FOX 9) – Minnesota’s recreational marijuana market is witnessing a wave of secondary license sales, drawing comparisons to ticket resales on platforms like StubHub.

What we know:

A Roseville Wendy’s location is up for sale by Green Zoned Realty, complete with a retail license, city approval, and a locked-in lease. It is one of at least 80 licenses recently posted for sale, with a combined asking price once exceeding $100 million.

Jeff Brinkman from Superior Cannabis Company likens the situation to ticket scalping, noting the face value of a cannabis license ranges from $5,000 to $10,000. However, resold licenses on platforms like cannamls.com can reach $1.5 million for cultivation licenses and $1 million for licenses covering five retail stores.

State law allows license transfers with approval from the Office of Cannabis Management, but the Wendy’s location has not yet received a license from the state. The city of Roseville has approved it, but a change in majority ownership would push the location back in line for the city’s three retail licenses.

The backstory:

Carol Moss, a cannabis attorney, points out that while legal, these sales go against the spirit of the law intended to foster a craft cannabis industry for small businesses in Minnesota. Rep. Nolan West highlights that the secondary market emerged after licensing shifted from merit-based to a lottery system.

Why you should care:

The ability to sell licenses is crucial for business owners, as it supports the concept of generational wealth, especially for social equity applicants. However, the rise of secondary sales raises questions about the integrity and intent of the state’s cannabis industry.

What we don’t know:

The specifics of many license sales remain under non-disclosure agreements. The future impact of these sales on Minnesota’s cannabis industry is uncertain.