Alabama Regulator Grants Most Coveted Medical Cannabis Licenses To Five Applicants As Legal Dust Finally Settles

Nearly two weeks after granting 20 medical cannabis licenses for the production, distribution and testing of medical marijuana, the Alabama cannabis regulator has voted to award the most coveted permits – the integrated facility licenses, which allow for vertical integration – to five applicants out of 33.

On Tuesday, Dec. 12, the Alabama Medical Cannabis Commission gave the green light to Trulieve Alabama Inc. – part of Trulieve Cannabis Corp. TRUL TCNNF – Sustainable Alabama, LLC; Wagon Trail Med-Serv, LLC; Flowerwood Medical Cannabis, LLC and Specialty Medical Products of Alabama. The approved licensees now have 14 days to pay the license fee, which is roughly $50,000, reported WVTM.

Commission chairman Rex Vaughn praised the move.

"I cannot emphasize strongly enough how much I appreciate the commitment and hard work of each Commissioner as we have navigated through this phase of the program," Vaughn said. "The result of these efforts has led to the award of licenses to entities who the Commission has determined are well-suited to serve patients through Alabama's medical cannabis program."

The licenses are scheduled to be issued on Jan. 9

Background

Meanwhile, this is the third attempt on the part of the commission to kickstart the new cannabis industry.

Two failed attempts in June and August were followed by a months-long legal saga that resulted in the AMCC resolving a majority of the issues raised by license applicants following a day of closed-door negotiations in November, prompted by Montgomery Circuit Court Judge James Anderson.

The November settlement put an end to numerous legal actions against the regulatory body brought by medical cannabis operators Alabama Always LLC, Medella LLC, and Verano Holdings Corp. VRNO VRNOF. The Chicago cannabis giant Verano was awarded an integrated facility license as part of the commission's first attempt to allocate licenses in June and then left without it in August's round.

Under that deal, the commission nullified controversial scores from third-party evaluators previously used to rank business license applicants on Nov. 27, effectively resetting the process of awarding business licenses.

Legal Hurdle, Yet Again

However, AMCC got slammed with new lawsuits in the days to come.

First came a legal action from the processor which was granted a processor permit in the first and second rounds, but left without it in AMMC's latest attempt to allocate licenses.

That lawsuit alleged the commissioners lacked clarity regarding the selection method for license winners while indicating they did not review the extra permit materials that the company submitted with their third attempt at acquiring a license from the AMCC.

Then, Alabama Always filed a new and third lawsuit against the Commission in Montgomery County Circuit Court.

This time, the applicant for an integrated medical cannabis license, challenged the fairness and legality of the AMCC's licensing process under Alabama law, reported Alabama Political Reporter. The legal action came ahead of AMCC allocating integrated medical cannabis licenses on Dec. 12.

According to the lawsuit, there's a bias against the company among certain members of the AMCC.

However, Judge Anderson denied the temporary restraining order request by Alabama Always.

"I read your pleadings. I read the amended pleading. My initial thought is I think the commission, as long as they don't violate a law, can do what they want about coming up with stuff," the Judge said.