From Jen

Welcome to my new and improved newsletter! Here, you’ll find the latest updates on Minnesota’s cannabis industry, and resources for its entrepreneurs.

The main question I’m hearing this week: “What can I do to be ready for the licensing process?” I’m excited to announce a free webinar next Thursday for business owners about to apply for licensing (register here), and share a free checklist of info to gather (below).

As I transition to consulting, I also plan to add more start-up and business education to this newsletter, starting with a round-up of some Minnesota resources for first-time entrepreneurs (below).

I want to hear from you about what you hope to see in this newsletter, and from me! Breaking news? Upcoming industry events? Company profiles? National news roundups? Resources for building a small business? Reply, and let me know.

-Jen

MN-OCM Updates

The good news? Minnesota is on track to open the industry in 2025, beginning with microlicensees. That’s right: I expect that the first to actually receive their license and open their doors will be microlicensees, especially those whose applications were already reviewed by MN-OCM. Next will be the microlicensees applying in the upcoming February-March round. Neither group has to wait for the uncertainty of a lottery, unlike the larger license types.

Minnesota OCM has re-opened the portal for verification as a social equity applicant. If you plan to apply for a license in the February-March timeframe as a social equity applicant, and did not go through this paperwork process yet, do this by Jan. 30. Link to OCM site Already verified in July, or applying as a microbusiness? Most likely you can skip this step.

Comments on the proposed Minnesota cannabis industry rules are due by Feb. 12. Draft and portal for commenting are here. I plan to do a special newsletter issue late next week focusing on the draft rules!

MPR reported on a 2025 report from MN-OCM, which stated that “the agency found more than 199 pounds of illicit cannabis flower at 134 sites from January to October of 2024. That’s around $607,000 worth of flower voluntarily destroyed by businesses upon inspection. Four business entities were fined $10,000 each in civil penalties.”

Interestingly, the article also said, “According to a survey by the OCM on cannabis use, 40% of Minnesotans consumed cannabis daily or almost daily. Participants also reported obtaining an average of 24 grams of cannabis within the past month, which is slightly higher than the national average and comparable Midwest states — “suggesting a robust market for cannabis-related businesses.” Full story

Other Cannabis News

The federal DEA has stayed the hearings about cannabis rescheduling for at least 3 months, and Trump’s new acting head of the DEA has been unfriendly to the cannabis industry in the past. Dentons 

Also from Dentons: 

Declining Cannabis Use Among Youth –  Studies continue to show that cannabis legalization has led to a decrease in use among teenagers in 19 of 21 U.S. states. National data mirrors state trends, with significant declines in use among 12th-grade students. The decline in youth use has been attributed to strict age-verification regulations reducing access for minors as well as tax-funded education programs that increase awareness about the effects of cannabis.

Study Finds Lower Opioid Misuse After Passage of Medical Marijuana Laws –  A study by Columbia University’s Mailman School of Public Health observed decreases in opioid misuse among individuals who used cannabis and lived in states with medical cannabis laws. While the same effects were not found in states with both medical and recreational cannabis laws, the findings do suggest that medical cannabis laws may help reduce opioid misuse among cannabis users. The combined effect of medical and recreational laws is less clear with further research needed to understand the long-term impacts of such laws.

Marijuana Moment reports that:

A new poll commissioned by Green Thumb Industries shows that more American adults use cannabis as a sleep aid than choose prescription sleep aids or alcohol for help falling asleep.

President Donald Trump issued a full pardon to dark web drug market Silk Road operator Russ Ulbricht—despite his overall position that people who sell illegal drugs should face the death penalty.

Cannabis Licensing in MN: The Good, The Bad & The Paperwork

Free Live Discussion

Thursday, January 30, 2025 | 12:00-1:00 PM Central Time

Thinking about applying for a Minnesota cannabis license? Grab your lunch and join us for an informal chat with two sought-after service providers to Minnesota's cannabis industry.

• Layle McFatridge - National cannabis license writer (Layle has written license apps in 20 states!)

• Jen Randolph Reise - Once-attorney, now-consultant and your go-to Minnesota cannabis insider

What to Expect:

Pull up a chair as Layle and Jen share their insights on the upcoming application window (February 17 - March 14). They'll break down what they're seeing, what they're expecting, and what you should be thinking about as you prepare your application.

Why You'll Want to Listen In:

• Get the inside scoop on what makes a strong application

• Hear real talk about what we know (and don't know yet)

• Pick up practical tips you can use right away

• Join the Q&A - bring your questions!

The Details:

• Totally free

• Join from anywhere - it's virtual

• Can't make it live? No problem - everyone who registers gets the recording

Perfect For:

Anyone curious about jumping into Minnesota's cannabis industry. Whether you're just starting to explore or already deep in planning mode, this casual conversation will help you figure out your next steps.

Save your spot - Register below!

Might miss the live chat? No worries - register anyway and we'll send you the recording.

For those of you thinking about writing your own license, I hope you’ll tune in. This is designed for you.

And for those of you who would like to pay for a lot more help from Layle and me on your applications, we have started to sell our full-service slots. If you’d like to hire us at the Standard or VIP level (both of which take the paperwork off of your plate as much as we can), email Jen at [email protected].

Press and Appearances

Jen joined the Great Lakes Bake Club on January 21 for a wide-ranging conversation which included the special challenges for startups in the legal cannabis space, her pivot to consulting, her take on what’s next for the Minnesota cannabis industry, and why she cares so much about the medical program. Watch recording: great lakes bake club (yuo’ll need this password: b&5#wBkJ)

Preparing for your Cannabis Business License Application

If you plan to write your own application, here’s some information to gather now, before we have the form of application available:

• Full names of each owner, along with date of birth and Social Security Number

• Gather together organizational documents (For an LLC, you should have Articles of Organization, filed with the Minnesota Secretary of State, and an Operating Agreement signed by all owners (unless you have only one owner))

• Document knowledge and experience of each owner in any of the following categories:

  • Owning/Operating a Business

  • Working in the Cannabis/Hemp Industry

  • Operating a Highly-Regulated Business

  • Working with Consumer Goods, Agricultural Products, or Controlled Substances

  • Other Relevant Work, Educational, or Volunteer Experience

• If seeking Micro/Mezzo, which endorsements are you going to seek? Begin to plan for:

  • Cultivation: How large will your facility be?

  • Extraction and Concentration: What types of extractions do you plan to do?

  • Production of Customer Products: What types of products do you plan to create?

  • Retail Operations: Roughly where do you plan to locate your retail location?

• Be prepared to answer the following questions: What is the expected size of your business? What is the anticipated growth of your business? What is the general location of your business?

H/t to Tanner Berris

Want more about what’s going to be in the application? Watch the free webinar with Jen & Layle next Thursday! Register here.

Other business-building resources

From Hennepin County: 
Join other entrepreneurs and work toward launching your business idea in CEO Start (free; to apply, click here). CEO Start, powered by CO.STARTERS, is open to anyone in Hennepin County with a great business idea. Participants will assess their idea with a framework for testing and validating their concept so they can build a viable business; or understand why it might not work. Applications are now open for the next CEO Start training. Applications will be accepted through February 11 with training beginning on March 11.

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Small business owners in Hennepin and Ramsey County: consider applying for the CEO Now Cohort program, a no-cost group-learning opportunity from Elevate Hennepin designed to support emerging small business owners with at least 1 employee and $250,000-$2M in revenue. The program helps them learn the strategic and technical foundations of running their businesses more efficiently and strategically. Businesses must be located in Hennepin or Ramsey counties to participate. Apply / Learn More (program closes soon)

CEO Now curriculum overview:

• 7-months of training

• Up to 100 hours of learning and dedicated time to work on your business

• 40 hours of in-class peer learning

• 12 hours working with 15-20 peer business owners

• Key topics:

  • Business and strategic assessment

  • Balancing finances and cash flow

  • Building a profitable sales process

  • Finding key personnel

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WomenVenture, based in the Twin Cities, is a non-profit which sponsors excellent trainings, consulting, and lending/grants programs to support entrepreneurs. I’ve taught the Legal section of their five-session Small Business Essentials, which is designed for first-time entrepreneurs working to develop a business plan with the goal of launching a small business.

Learn more about WomenVenture’s training programs here !

Here’s the structure of the 5 classes in Small Business Essentials ($250):

1. Introduction to Business Fundamentals. Understand the basic concepts and terminology of business. Recognize the importance of a business plan and its role in guiding business operations and attracting potential investors. Learn how to start talking about your business and your value proposition.
   

2. Market Research and Analysis. Learn how to conduct market research to identify target markets, customer needs, and competition. Understand how market analysis influences product/service development and business strategy. Understand how to build a brand and why it’s important.

3. Financial Management and Planning. Grasp the fundamental financial principles necessary for managing and planning a business, including budgeting, cash flow, and financial statements. Gain knowledge of financial forecasting and how it aids in making informed business decisions and securing funding. Learn to assess and forecast the financial viability of a business by calculating the break-even point, making informed assumptions about when the business can support owner compensation, and understanding the impact of Cost of Goods Sold (COGS) on profitability.

4. Business Operations and Legal Considerations. Comprehend the key aspects of operations management, including supply chain, logistics, and efficiency improvements, while also learning how to ensure the business receives payment through strategies such as invoicing and Point of Sale (POS) systems. Understand the legal and regulatory requirements for starting and operating a business.

5. Building Networks and Graduation. Learn strategies to build a business network, including networking events, online platforms, and industry associations. Understand the importance of mentorship, partnerships, and leveraging key resources for business growth and success. Practice pitching your business plan in a lightning talk format and conclude by stating next steps in launching the business. Graduates of Small Business Essentials have the opportunity to meet with three volunteer expert advisors for one-on-one consultations in marketing, finance, legal, and more.

Cost: $250

Upcoming Events

Have upcoming events for the next newsletter? Please email to me at [email protected]