Here We Go Again: Alabama Cannabis Licensing Process Stalled As Awarding Process Faces Lawsuit

Montgomery Circuit Judge James Anderson has initiated a temporary restraining order that halted the ongoing medical cannabis licensing process undertaken by the Alabama Medical Cannabis Commission, reported Alabama Political Reporter.

"The court is concerned about how long this process is taking," Judge Anderson said. "This is something that needs to move along."

Why The Hold Up...Yet Again?

The move follows Alabama medical cannabis business taking legal action against the state regulator for its faulty cannabis licensing process and seeking a temporary restraining order to block the licenses from being issued.

The commissioners "retreated into executive session, only to emerge three and a half hours later and ratify a slate of applicants that it had voted on during executive session," Friday's filing from Alabama Always LLC stipulates. "It is painfully clear now that the Commission continues to believe that it can conduct its business privately and observe the (Open Meetings Act) only by violating it."

Alabama Always was not among the businesses the state commission awarded the licenses to recently when it reopened the stalled process that was stopped in June and has been burdened by legal hurdles since then.

In July, the medical cannabis operator, which invested $5 million in a Montgomery-based marijuana cultivation and processing facility, accused the commission of improperly deleting meeting recordings, which it considers to be key evidence for the case.

Months-Long Legal Hurdle

Cannabis multi-state operator Verano Holdings Corp. VRNOF which initially secured a highly sought-after Integrated Facility License in June lost its chance to get a share of the state market as part of the second round of license issuing.

Darren Weiss, president of Verano Holdings, is a speaker at the upcoming Benzinga Cannabis Capital Conference in Chicago this Sept 27-28. He'll undoubtedly have more news on the company's challenges in Alabama.

The need for more transparency in the licensing process was among the concerns that prompted the initial revision of issued licenses. In return, numerous companies sued the commission over closed-door meetings.

What's Next

The court scheduled a preliminary hearing on the alleged violation of the Open Meetings Act at 1:30 p.m. on Aug. 28.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of 5-second Studio and Eight Photo by Shutterstock