The Missouri Division of Cannabis Regulation (DCR) has revoked nine microbusiness marijuana licenses after a review found them unable to meet strict, equitable eligibility rules, according to a DCR press release.
The revoked licensees included High Aroma LLC, which listed a Springfield address, 3242 S. Stewart Ave., on its application for a microbusiness license, according to DCR records.
While the business listed a physical address that was in Springfield, the number listed on High Aroma's application was registered to an Arizona-based business, Cannabis Business Advisors (CBA). Specifically, Maxime Kot, president and part owner of CBA, was listed as the contact on High Aroma's application. CBA is a marijuana industry consulting firm, helping businesses launch in the relatively new industry, according to the company website.
Cannabis Business Advisors issued the following statement in an email to the Hauxeda:
“The recent cannabis micro license revocations by the Missouri Department of Health and Senior Services are severely unjust and irreparably penalize the qualified social equity applicants who were awarded the life-changing opportunity to become successful cannabis entrepreneurs and provide generational wealth for their families.“
“We remained fully compliant with all regulatory guidelines throughout the application process and fully intend to challenge the decision that goes against the law’s intent, and our company’s intent, to help small and minority-owned businesses break into the cannabis industry in the state of Missouri.
In late-2023, DCR issued 11 notices of pending revocation for microbusiness licensees that were awarded earlier that year. All but two of the microbusinesses proved to be ineligible due to owners or licensees not meeting requirements.
Who meets the requirements for a marijuana microbusiness?
Microbusiness licenses are only issued to eligible individuals and entities, allowing for marginalized or under-represented individuals to take part in the Missouri marijuana market, according to information on the website of DCR, a division of the Missouri Department of Health and Senior Services. Microbusinesses operate at a smaller scale than medical or regular marijuana licensees.
A microbusiness license is also designed to be a path to cannabis business ownership by those “who might not otherwise easily access that opportunity, such as those with a net worth of less than $250,000 or veterans with a service-connected disability,” according to the DCR release.
Nine licenses were revoked across the state, according to the release. One was revoked due to an owner having a disqualifying felony offense. The other eight had numerous violations, including providing false or misleading information in the application and failure to demonstrate the microbusinesses were owned and operated by eligible individuals.
There are two types of microbusiness licenses: Wholesale and dispensary facilities. Wholesale facilities include the cultivation and manufacturing of marijuana and cannabis products, while dispensaries sell those products to the consumers. Microbusiness liscensees may only do business with other microbusiness liscensees.
High Aroma was initially awarded a dispensary microbusiness liscense in late-2023. The property parcel listed on High Aroma's application, 3242 S. Stewart Ave., is owned by HCF Strategies LLC, according to Greene County Accessor's Offices records. HCF Strategies is registered to Joshua K. Roberts, with a Springfield address, according to Missouri Secretary of State records.
The property previously housed the restaurant Gettin' Basted, according to the company's Facebook.
In October 2023, DCR issued 48 microbusiness facility licenses across the state, completing the first of three rounds. The second round of applications, which use an online registry portal, runs from April 15-29, according to a DCR release. The lottery will take place in June 2024 and issuance of those licenses is expected to occur in July 2024.
