Buffalo, N.Y. (WBEN) - Wednesday night, Colligan Law will hold a workshop for those interested in pursuing a license to sell cannabis. Lawyers say the process is not easy and there are a number of steps you'll need to take to ensure success.
Aleece Burgio of Colligan Law says the workshop, 'How to Apply for a Cannabis License in New York', is aimed at helping applicants get ready as a 60 day window begins on October 4. She says the first thing is to have a checklist in place.
"Making sure people are 21 and older having their entities form", are two of them, says Burgio. She also says she will go through the different corporate structures that are seen typically in cannabis, how to set up your companies and different things to look for with operating agreements.
Burgio says the application process is the easy part. "Where people kind of get tripped up is once they're awarded their their provisional license, you're going to have a year to put a lot of effort into getting that license up and running. I think most people underestimate the amount of capital that it will cost to get these businesses going," warns Burgio. She says the application will be first of some 20 steps to get the license.
Matthew Pelkey focuses on the "back end" of the business, dealing with raising capital and navigating some of the risks and regulatory environment. "Oftentimes these are first time entrepreneurs or this is their first foray into raising capital, and that's a big learning curve. So, understanding not only what the responsibilities and obligations are from a compliance perspective, but understanding market terms," explains Pelkey.
Pelkey says finding the right investor is key. "How do I find an investor that isn't trying to take advantage of the situation? How do I even have the knowledge to know that, and unless you're working with experienced counsel or you've had experience in this space before, it can be a real challenge," says Pelkey.
Pelkey notes one requirement for a license is to have a physical space. "One of the challenges there, quite frankly, is that you're seeing landlords charge a premium, even just for those letters of intent, which, in any other industry, typically you're not even seeing any money changing hands, at that point, maybe a deposit that's refundable under certain circumstances. And so, charging up to $20,000, just for a letter of intent, that can certainly be a barrier to entry," explains Pelkey. He adds things like payroll will also add up.
The event takes place at 6 p.m. ET on Wednesday at UB South Campus.