Hartford Business Journal

20 HARTFORDBUSINESS.COM | JANUARY 17, 2022 FOCUS: Cannabis Green Rush With license application period approaching, recreational cannabis entrepreneurs race to line up business plans, investors, locations By Skyler Frazer sfrazer@hartfordbusiness.com I n recent months, Aprelle Mintz, Jason Freeman and Anthony Robustelli have been juggling full-time day jobs along with finalizing details on their next dream: to open a retail cannabis store in their hometown of Bridgeport. The partners said they are hoping to open adult-use cannabis dispensary Divine Artisans LLC, and they've been doing everything in recent months to get their fledgling business off the ground, from creating a business plan to collecting paperwork needed to file their license application. "Little by little over the next few months we're just trying to go down that whole checklist," said Mintz, whose company is applying for social equity status, which provides certain advantages like reduced license fees and is reserved for companies with founders from underserved communities historically targeted by the government's war on drugs."It's a challenge, but we're pushing through it." Divine Artisans' business formation efforts are now taking on greater urgency as the state prepares to accept license applications next month. The Department of Consumer Protection (DCP) recently announced that the 90-day window for prospective retail dispensaries to submit license applications begins Feb. 3, a key milestone in the state's efforts to stand-up the recreational cannabis market. That means entrepreneurs like the Divine Artisans co-founders are on the clock to put together stacks of information like their tax history, job development plans, and residency and income data ahead of submission. In addition to the plethora of paperwork needed for applications, legal and accounting experts say many prospective cannabis companies face financing challenges and uncertainty ahead of the process. Preparation is key Many requirements for adult-use cannabis enterprises are already public, but as of early January, entrepreneurs were still waiting for applications to be posted online so they could iron out final details. "There's just so many different factors that we don't know yet," said Tiana Hercules, who hopes to open a Hartford-based upscale retail dispensary — called Lady Jane — that highlights Black and brown businesses in the city. With most of her business and social equity plans laid out, Hercules said she's been working with consultants to narrow down a security company provider and location. Hercules said she's been referring to other states' license applications and news from DCP about what information she will need to have ready. In some cases, that means collecting more information and doing more research than expected. "I'd rather be over prepared than under prepared," Hercules said. Like others, Hercules said she hopes the state has some wiggle room if applications aren't filled out perfectly, as the process has been "a little bit nebulous." Freeman said that all of the unknowns in the process have been a learning experience as his team navigates a new industry. "For a lot of folks who are trying to get into this industry — some have been in business and some haven't — it's overwhelming and it can be daunting to look at this list of information you have to go through," said Megan Budd, a CPA with accounting and consulting firm Marcum LLP. 'Ducks in a row' The application process is the first step to recreational cannabis business formation in the state. Applications will be available for eight different business licenses — ranging from dispensaries, food and beverage providers, product manufacturers and transporters — on a staggered basis, beginning with retailers on Feb. 3; the application period for the first round of licenses will remain open for 90 days. After that, DCP will hold two separate lotteries — for social Megan Budd A Curaleaf employee sorts marijuana buds at the company's Simsbury grow facility. Curaleaf plans to increase production for the recreational marijuana market. HBJ PHOTO | STEVE LASCHEVER

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