>> ERIC: ON WEDNESDAY THE STATE OFFICE OF CANNABIS MANAGEMENT PULLED THE SO-CALLED SOCIAL EQUITY PRE-APPROVAL LOTTERY AFTER A DELAY DUE TO PENDING LAWSUITS FROM APPLICANTS WHO FEEL THEY WERE UNFAIRLY DENIED.

THE ORIGINAL TIMELINE HAD MINNESOTA LAUNCHING THE CANNABIS MARKET IN EARLY 2025.

NOW THE GENERAL APPLICATION PROCESS IS SET FOR FEBRUARY WITH ANOTHER ROUND FOR SOCIAL EQUITY APPLICANTS PUSHED TO MAY OR JUNE.

ALL OF THIS COMES WITHOUT A PERMANENT LEADER FOR THIS OFFICE.

INTERIM O.C.M.

DIRECTOR CHARLENE BRINER CONTINUES TO STEER THE SHIP.

WELCOME BACK.

WELL?

[ Laughter ] CAN WE HANDLE THE DELAY?

ARE PEOPLE UPSET OR IS IT JUST PART OF LAUNCHING A VERY COMPLICATED DEAL?

>> SO, YOU KNOW, IT'S INTERESTING.

I WAS AT A CANNABIS EREGULATORS CONFERENCE A COUPLE OF WEEKS AGO, AND THE POINT OF LICENSING IS ONE OF THE MOST CHALLENGED IN ANY STATE THAT DOES THIS BECAUSE GETTING TO MARKET EARLY IS REALLY AN ECONOMIC BENEFIT FOR THOSE EARLY OPERATORS.

SO IT'S NOT A SURPRISE THAT WE SEE LICENSING CHALLENGES.

I WOULD ALSO SAY THAT WHILE WE CERTAINLY DID NOT WANT TO SEE A DELAY FROM A STAY, THAT WE FEEL CONFIDENT THAT THE PIVOT THAT WE'VE TAKEN WILL STILL KEEP US ON TRACK TO LAUNCH A MARKET IN 2025.

SO I THINK THAT IT IS A COMPLICATED PROCESS.

THIS IS HIGHLY REGULATED SPACE.

AND APPLICANTS ETEST OF READINESS IS SUBMITTING A SUCCESSFUL APPLICATION, MAKING SURE THAT YOU CAN ACTUALLY OPERATE IN THIS SPACE, AND I FEEL CONFIDENT THAT AS WE MOVE INTO THE STANDARD LICENSING PROCESS, WE'LL ALSO HAVE TOOLS TO WORK WITH THESE APPLICANTS MORE CLOSELY.

>> Cathy: BUT THE CHANGING TIMELINES, THAT'S REALLY KIND OF CAUSING PEOPLE SOME CONCERN OBVIOUSLY, AND I'M WONDERING, CAN ANYONE START GROWING RIGHT NOW AT ALL?

>> NOT WITHOUT RULES.

WE ARE STILL IN THE PROCESS OF DEVELOPING RULES.

WE WILL HAVE THOSE IN PLACE.

WE ARE ON TRACK FOR THE END OF THE FIRST QUARTER OF 2025.

ONCE THOSE RULES ARE IN PLACE, THOSE 648 APPLICANTS WHO WERE IN THE PREAPPROVAL PROCESS SET FOR LOTTERY WILL BE ABLE TO MOVE FORWARD.

AND OF THOSE, 194 ARE WHAT WE CALL THE MICRO-BUSINESS LICENSE APPLICANTS.

THEY'LL BE ABLE ONCE RULES ARE IN PLACE, WE'RE GOING TO CONSIDER THOSE APPLICATIONS, AND OF THAT 194, THEY CAN CULTIVATE.

SO DEPENDING ON HOW QUICKLY THEY'RE READY FOR BUSINESS, THEY CAN GET PLANTS IN HE GROUND.

SO WE COULD SEE CULTIVATION BY, YOU KNOW, PERHAPS LATE SPRING, EARLY SUMMER.

>> Cathy: WHAT'S THE RULE THE TRIBAL NATIONS IN THIS?

THEY ALREADY ARE ON THE ROUND AT THIS POINT.

IF THERE'S STILL DELAYS, CAN THEY RAMP UP EVEN MORE?

>> THAT'S ALWAYS OUR TRIBAL PARTICIPATES HAVE ALWAYS EEN CONSIDERED A FOUNDATIONAL PARTED OF MINNESOTA'S MARKET.

WE TOOK A VERY DIFFERENT APPROACH IN MINNESOTA.

USUALLY YOU JUST SEE STATES FLIP THE SWITCH ON THEIR MEDICAL MARKET.

SO WE'RE GOING TO BE DEPENDENT ON BOTH OUR SMALLER OPERATORS AND OUR TRIBAL PARTNERS.

WE'RE ACTIVELY ENGAGED IN COMPACTING WITH TRIBES, GOVERNMENT ON GOVERNMENT COMPACTING.

WE'RE ON THE VERGE OF EXECUTING THOSE WITHIN THE NEXT COUPLE F MONTHS PROBABLY.

AND SOME OF THOSE TRIBES ARE ALREADY IN THE PROCESS OF CULTIVATING AND WILL BE POSITIONED TO SERVE THE COMMERCIAL MARKET.

SO THAT'S GOING TO BE A GREAT PIECE OF IT AS WELL.

>> Eric: HAVE THE NUMBER OF APPLICANTS SURPRISED YOU OR YOU THOUGHT ABOUT WHAT IT WAS GOING TO BE?

>> I THINK THAT IT WAS REALLY HARD TO PROJECT, BUT WHAT WE'VE SEEN IN OTHER STATES IS THAT WE SEE HUNDREDS, IF NOT THOUSANDS OF APPLICATIONS IN THESE EARLY ROUNDS, AND SO I WOULD ANTICIPATE WHEN WE OPEN FOR STANDARD LICENSING, WE'RE GOING TO EE MAYBE EVEN A BIGGER NUMBER.

>> Eric: AND HOW MANY DISPENSARIES -- IS THERE A LIMIT STATEWIDE?

>> THERE IS INITIALLY FOR RETAIL LICENSES FOR A COUPLE OF LICENSES WILL BE CAPPED IN STATUTE.

BUT FOR THE MICROS, THAT SMALL VERTICALLY INTEGRATED WHERE YOU CAN CULTIVATE, YOU CAN MANUFACTURE, YOU CAN SELL.

THERE'S NO CAP.

>> Cathy: WE KEEP HAVING YOU BACK, AND WE KEEP SAYING YOU'RE INTERIM.

>> I'M GOING FOR THE RECORD, CATHY.

[ Laughter ] >> Cathy: SO IF YOU'RE STILL SAYING THAT IT'S STILL POCK TO GET THINGS GOING BY LATE 2025, WILL YOU HANG IN THERE UNTIL LATE 2025?

>> I HAVE ALWAYS SAID THAT THIS IS AN INTERIM ROLE.

BUT I'M NOT GOING TO STAY IN THE ROLE PERMANENTLY.

AND I AM COMMITTED TO HELPING STEWARD THE OFFICE UNTIL THE TIME COMES.

>> Eric: YOU'RE CURSED WITH THE GIFT OF SERVICE I HAVE.

>> THAT IS A CURSE THAT I FEEL