Cannabis is a sensitive industry and even minor negligence can put you in severe legal issues. That’s why, it’s always better to know everything at every step, especially when it comes to license selling.
Do you also want to sell out your cannabis license? Are you wondering who you should sell out to? Are legal issues stressing you out? We can understand your insecurities pretty well!
Therefore; in this article, we have mentioned the 10 questions that you should ask from the license buyer for safety and security.
- What type of cultivation are they involved in?
Cannabis cultivation is usually heavily restricted; so, you need to be clear from buyers what kind of cultivation they are involved in, and what type of rules they are going to follow. Usually is best to check the soil and growing medium, keeping in mind that the three essential nutrients needed in cannabis growth are Nitrogen, Phosphorus, and Potassium.
- What type of Cannabis are they going to cultivate?
The market is cultivating two types of Cannabis plants, either Marijuana or Hemp. Though both belong to the same plant family, both are entirely different and there are different rules and regulations or laws for both. So that’s why you need to be assured of the type of Cannabis they are planning to cultivate.
- Are they going to offer retail services?
Some states may demand that you have a good product and facility security in place as a retailer. They may also impose restrictions on the number of products sold to a single customer and on the product pricing.
Make sure you also know about the rules and restrict any illegal retailing; otherwise, how can you investigate the license buyer?
- Would they cultivate cannabis for any edibles?
Some states allow manufacturers to use cannabis for plenty of edibles. If the buyer is going to be involved in manufacturing edibles or cultivating cannabis for edibles, make sure their extracts are within the legal limits only.
- Are their investors following the rules and regulations?
Those interested in investing in cannabis businesses may also need to follow special legal and statutory requirements.
Therefore, anyone interested in lawfully investing in a marijuana business should pass some criteria for that specific state. Don’t forget to raise this question in front of your buyer; right?
- Do they have proper licensing for employees?
Yes, employees who work for a cannabis company also need to have a license. A registered agent card must be applied for and received by any employees or volunteers of a cannabis business in most states.
Ask what type of license the relative state requires.
Most of the time, a Key Employee License is required of any employee making operational or management decisions. Whereas a Support Employee License may be necessary for any employee who works for the company but does not make operational choices.
- What are their plans for assisting the industry?
Even in this advanced era, owning and running a cannabis business is a bold move. Political participation at the municipal, state, and federal levels is no longer a choice, it’s an essential requirement.
Moreover, the sector won’t be able to grow without assistance; thereby, you need to ask about their assisting plans for the industry to make things transparent.
- What will they do to contribute to society?
Undoubtedly, it is also a vital question that a seller should ask from the buyer; it will help the seller figure out how beneficial it is for society if I sell the license to a particular individual/team.
Being a seller, you need to ponder, whether the buyer’s business seems constructive for the patients, consumers, employees, or not? What are the buyer’s plans about the people they are directly or indirectly linked to?
In a nutshell, it will enable you to unfold, whether your license is going in safe hands or not.
- Are they paying close attention to the local regulations?
While operating a cannabis business is allowed on a state level, one may face challenges on a local and state level.
The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) in California, for example, gives local governments the power to regulate what activities are allowed in their area. Some cities demand a local license before approving your business, while others may openly restrict it.
If you’re having difficulty figuring out the regulations yourself, get in touch with a cannabis consulting firm like Argonaut Advisors. Professional help from firms is vital while you’re looking to sell cannabis licenses. Plus, they can help you with many other things including cannabis financing.
- Do they clearly understand the cannabis licensing requirements?
To comprehend and follow all of the expected legal standards, make sure the license buyer has taken the first step toward starting a cannabis business and has done his complete homework.
Go prepare and ask them certain questions to estimate their knowledge regarding the cannabis business and its licensing requirements. If they are poor, they may play foolishly and that can affect your license or the authorized reputation. Be conscious!
Conclusion
Cannabis license is the owner’s personal property and if anything wrong happens the penalties will be directly charged to the license holder and there are chances of license cancellation, too.
Thus, if you are going to sell out your cannabis license, be smart and vigilant at that time. Ask the above-mentioned 10 questions from the license buyer to avoid any inconvenience.
