"It's a kangaroo court, but for once we're the kangaroo"

MN CANNABIS UPDATES

MN-OCM has not yet updated their Cannabis Market Monitor dashboard, so we’ll do June sales next time.

Review and approval of license applications continues. One key concern I’m hearing: a number of outdoor cultivators are still stuck in the process, with the summer moving rapidly by.

Here’s the licenses issued so far by MN-OCM:

• 6 Testing Facilities

• 7 Cultivators

• 11 Mezzobusinesses

• 207 Microbusinesses

• 2 Med Combos

• 2 Manufacturers

• 12 Transporters

• 8 Wholesalers

• 12 Retailers

• 5 Delivery Service

Full data from OCM is here.

Jen’s take: Major change from last month is that transport and delivery both now have some players open. And a significant number of retail locations have been opening across Minnesota, both under the large Retail license (which can have up to 5 locations) and under microbusinesses, which can have 1 retail location in addition to some cultivation and some manufacturing, if they obtain the endorsements for each of those activities.

My North Star Accelerator is also evidence of this pattern. We have two more member dispensaries celebrating their grand opening and re-opening, respectively: The Joint Dispensary in Wayzata will celebrate its grand opening on Tuesday, July 14, and CannaJoyMN will celebrate its grand re-opening (after 3 years as a hemp THC retailer) on Saturday, July 25. Both will be fun events that you are invited to - find details under “Events” below!

And, an Accelerator member is launching their licensed transportation business next week, Magic Touch Transportation. Transport has been a missing piece!

I’m proud to see these entrepreneurs beating the odds and opening their doors in this difficult industry.

My work was recently profiled in the WEIC newsletter. I appreciate how they captured what I’m trying to do for Minnesota’s small operators:

YOU ASKED: How do I order background checks for employees? And is it the same for owners?

My Accelerator members and other newly-open licensees are working hard to hire staff. A reminder that OCM updated the background check process for cannabis workers (i.e. employees and contractors) on March 1, 2026, and all those background checks now must go through the Bureau of Criminal Apprehension (BCA) process.  Here's the instructions: Background Checks for Employees / Office of Cannabis Management 

However, the question arose in the Accelerator whether new owners should use that process. You would have a new owner if, for example, you have an investor buying equity in your business, or you are buying a license on the secondary market, or you have been back in qualified applicant status (Step 2) and are now moving forward before the Jan. 1 deadline. I confirmed with OCM that new owners should, instead, follow the older process detailed here: Background Check Resources for License Applicants / Office of Cannabis Management This allows you to use a third-party background check provider and is less cumbersome. A small mercy! 

If you are making a change in ownership, also make sure to follow OCM's process detailed here:  Making Cannabis Business Changes / Office of Cannabis Management

Advertorial

The Cost of Cash and Why It Still Reigns in Cannabis

While most industries continue to move away from cash, cannabis remains largely cash-driven due to federal restrictions, limited banking access, and unreliable payment alternatives. However, the most successful operators are no longer viewing cash as simply a necessity, they’re treating it as a strategic asset. By analyzing every dollar from the register to the bank, they are uncovering the true cost of cash, including labor, security, transportation, compliance, shrinkage, and customer experience impacts.

Looking beyond transaction fees often reveals surprising opportunities. A payment method with a higher processing cost may ultimately generate greater profitability if it increases basket size, customer frequency, or operational efficiency. The same principle applies to store performance. Consider a 1,000-square-foot dispensary generating $1 million in annual revenue, or roughly $1,000 per square foot per year. While many operators focus on maximizing sales per square foot, revenue alone does not define success. True performance is measured by profit per square foot and cash flow per square foot after accounting for payment costs, labor, compliance, security, taxes, and cash-handling inefficiencies. The highest-volume store is not always the most profitable; the winning operator is the one that keeps more of every dollar, moves money more efficiently, and builds systems that compound value over time.

As cannabis markets mature and pricing pressure increases, leading operators are shifting their focus from individual transactions to long-term customer relationships. Rather than simply moving cash securely and compliantly, they are measuring the full lifecycle cost of money, reducing payment friction, and improving the customer experience. Cash may still reign in cannabis because it is reliable, but the future belongs to operators who understand its true cost, optimize how it flows through their business, and use it as a tool for sustainable growth and profitability. 

Supporting Local Commerce. Empowering Communities.

OTHER CANNABIS NEWS

Federal

Rescheduling hearings continue at the DEA facility outside Washington, DC. In spite of advocate efforts, the DEA is not allowing livestreaming or recording of the proceedings - meaning there is no real record. A few advocates have been allowed to attend and are reporting from their handwritten notes each night, so we are hearing parts of the testimony brought by the anti-cannabis groups, like Smart Approaches to Marijuana (SAM). 

However, the government has also called its own witnesses to testify in favor of the rule change. On the first day of testimony, Dr. Corey Burchman testified to the efficacy of medical cannabis for pain management and helping wean patients off of opioids. That matters, says Cultivated, because, "By definition, there only needs to be one accepted medical use for cannabis to be removed from Schedule I. That is the Currently Accepted Medical Use (CAMU) test the federal government uses to establish a drug’s classification."  

Indeed, says Rachelle Gordon in GreenState, federal agencies have already acknowledged that there are therapeutic uses for cannabis - by the approval of Epidiolex, in the 2023 HHS report recommending rescheduling, and in moving medical cannabis to Schedule III earlier this year. She says, 

Dr. Burchman's lawyer, Gary Kaminsky, joined Cultivated Live on 7-7 for a great interview which gave me a lot of hope. He agreed with Rachelle that the government simply needed to prove that marijuana has one medical use, and that the government had done that with one witness, Dr. Burchman. The testimony from SAM and others to alleged dangers of marijuana is irrelevant to the point being argued. “It may be a kangaroo court — but for once, we're the kangaroo,” says Gary Kaminsky.

I'm hearing no real updates to the looming federal hemp ban. As I noted in the last newsletter, the White House did urge Congress earlier this summer to delay the ban or support a fix. A “hail mary” (a last-minute bill to fix the issue) is still possible.

In related news, remember that it was Sen. Mitch McConnell who inserted the hemp ban into the bill to reopen the government last year, in an underhanded move? McConnell is reportedly in a coma on his deathbed, still blocking the legislative process. He hasn't resigned from Congress, because that would allow Kentucky's Democratic governor to appoint someone to replace him in the Senate. Maybe even Rep. Thomas Massie (R-KY), who just lost his primary race after being a thorn in Pres. Trump's side. Also remember that McConnell is the reason Trump has appointed FOUR Supreme Court justices, more than any other President, swinging the Court dramatically to the right. McConnell, remember, refused to hold Senate confirmation hearings in the last nine months of Obama's presidency, in order to take the seat for the right if Trump won in 2016. He trolled Justice Ruth Bader Ginsburg about it on her deathbed. I’d love to see Kentucky Gov. Andy Beshear insist that Kentucky deserves two Senators who can do their jobs - and maybe McConnell’s replacement could even be a champion of the hail mary fix. A girl can dream!

Note: Wish you could ask questions about the looming hemp ban? You’re in luck - I’ll be speaking at Earl Giles next Wednesday, July 15 on a great panel about the future of hemp THC. 6 PM, more info in Events!

A new survey by Crescent Canna of Americans who have tried their hemp THC beverages found that they replace alcohol consumption. And most, but not all (87%) of the consumers were aware of the ban coming in November. Here's what caught my eye: If the ban goes into effect as scheduled, 67% of THC drink consumers said they would turn to other forms of cannabis and 23% would start drinking more alcohol. Just 8 percent say they would stop using THC entirely. The survey also asked consumers other interesting questions:

The American Medical Association's House of Delegates adopted two new resolutions when it met last month: one calling for a ban on flavored cannabis vapes, and one calling for educating doctors about the risks and potential therapeutic benefits of cannabis use among older adults.

Confidential Industry Classifieds

• Do you have a pending license who applied for you don't plan to use? I can help you get some money for it from hemp operators looking to transition into this market, and other potential buyers, as well.

• Is anyone else setting up harvest / trim crews for hire?

• Do you have something to advertise here?

Contact Jen @ [email protected] 

UPCOMING EVENTS

MOCHI MOMENT

Follow us on Instagram for all the Mochi antics

Know someone who needs this newsletter? Please forward to them!

Received this from someone else? Subscribe here to stay in the know about the Minnesota cannabis industry and tools for entrepreneurs!