Here's why these Springfield, Columbia marijuana microbusiness licenses were revoked
The Missouri Division of Cannabis Regulation revoked nine marijuana microbusiness licenses this week — including one in Springfield and two in Columbia.
In October 2023, the DCR issues the state's first round of marijuana microbusiness licenses, intended to allow more "everyday folks" to participate in the marijuana industry. A total of 48 licenses were awarded, six in each of the state's congressional districts.
In December, the DCR issued 11 Notices of Pending Revocation for marijuana microbusiness licenses that were awarded in October 2023. Each notice listed the basis for pending revocation and each licensee had 30 days to "cure" the deficiencies and/or respond to the allegations.
More: Marijuana microbusinesses: What are they and how do they work?
The DCR determined that two of the 11 licensees satisfied the notice by demonstrating that the licenses were "majority owned and operated by individuals who met qualifications of ownership," according to a news release. One license was revoked because an owner had a disqualifying felony offense; this license was revoked on March 11. The remaining eight had numerous violations, including providing false or misleading information in the application and failure to demonstrate that the licenses were majority owned and operated by eligible individuals. These licenses were revoked on Wednesday.
“While owning and operating a license may include contracting for management services or consulting services, the lack of knowledge, control, agency or decision-making demonstrated by the individuals whose information was used to meet eligibility does not meet even the most generous interpretation of owning and operating a business,” Amy Moore, director of the Division of Cannabis Regulation, said in a news release. “These circumstances do not meet the intent or meaning of the requirement in Article XIV that microbusinesses are operated by eligible individuals.”
One of these eight licensees was High Aroma LLC in Springfield. Specifically, the license was awarded to Maxime Kot, president of The Cannabis Business Advisors in Phoenix, Arizona. The business offers consultation services within the marijuana industry for license acquisitions, applications, facility operations and marketing, according to its website.
More: Recreational marijuana was legalized a year ago. Here's how Springfield market is growing
According to the Notice of Revocation provided to the News-Leader by the Department of Health and Senior Services, High Aroma LLC's license was revoked because of the following:
High Aroma LLC did not provide documents requested by the DCR within seven days of of a request. The DCR requested an operating agreement by Nov. 8, 2023 and received the agreement on Dec. 5, 2023.
High Aroma LLC withheld information and documentation requested by the DCR. Specifically, High Aroma LLC "admitted" that a MOU, or memorandum of understanding, existed in the same format as MOUs provided by other licensees that have the same designated contact.
High Aroma LLC entered into an agreement that "provides a security interest in marijuana product." This security interest, in certain circumstances, would result in an automatic transfer of marijuana product to a non-licensed entity, which is a violation of state law.
High Aroma LLC entered into an agreement that would transfer ownership and operational control to another entity.
During the application and verification process, the eligible owner had "limited to no knowledge or understanding of details with the agreements or operations of the license."
Two of the revoked licensees were based in Columbia: Frankenstein Enemy LLC and Cannarooted LLC. As for the individuals who were awarded the licenses, Amanda Kilroe represented Frankenstein Enemy LLC and Sara Gullickson represented Cannarooted LLC. In October, the Missouri Independent reported that Kilroe was attorney for Canna Zoned, a Michigan-based real estate agency. Gullickson is the founder and CEO of The Cannabis Business Advisors.
The reasonings for Cannarooted LLC's license revocation were the same as High Aroma LLCs.
When asked if The Cannabis Business Advisors was interested in providing a comment on the revocation of licenses, Gullickson responded with the following via email:
"The recent cannabis micro license revocations by the Missouri Department of Health and Senior Services are severely unjust and irreparably penalize the qualified social equity applicants who were awarded the life-changing opportunity to become successful cannabis entrepreneurs and provide generational wealth for their families. We remained fully compliant with all regulatory guidelines throughout the application process and fully intend to challenge the decision that goes against the law’s intent, and our company’s intent, to help small and minority-owned businesses break into the cannabis industry in the state of Missouri."
According to the Notice of Revocation provided by the Department of Health and Senior Services, Frankenstein Enemy LLC's license was revoked because of the following:
The DCR was unable to obtain a reply from the owner through an email address listed on Frankenstein Enemy LLC's application.
Frankenstein Enemy LLC did not provide documents requested by the DCR within seven days of of a request. The DCR requested an operating agreement by Oct. 18, 2023. The application acknowledged the existence of these documents on Oct. 25 but did not provide them. A follow-up was sent by the DCR on Nov. 6. The documents have still not been provided.
The News-Leader contacted Kilroe for a comment on the license revocations but was unsuccessful in reaching her by deadline.
Next round of microbusiness applications opens April 15
The DCR and Department of Health and Senior Services are preparing for the second round of marijuana microbusiness applications. The application window for these licenses will be open Monday, April 15 through Friday, April 19, and licenses will be awarded in July. Applications will be accepted through an online registry portal at mo-public.mycomplia.com/login.
More: Missouri's next round of marijuana microbusiness applications opens April 15
As in the first round, 48 licenses will be distributed during this second round — six in each congressional district.
Greta Cross is the trending topics reporter for the Springfield News-Leader. Follow her on X and Instagram @gretacrossphoto. Story idea? Email her at gcross@gannett.com.
This article originally appeared on Springfield News-Leader: Springfield, Columbia marijuana microbusiness licenses revoked by DCR
