Nevada Rejects 60% of Cannabis Social Equity Lounge Applicants

Nevada Cannabis Compliance Board Disqualifies Six Social Equity Consumption Lounge Applicants

The Nevada Cannabis Compliance Board (CCB) has disqualified six out of ten applicants for social equity consumption lounge licenses, citing failure to meet residency criteria. This decision, impacting applicants selected through a random computer drawing in 2022, has further refined the list of potential licensees.

Disqualified Applicants

The six disqualified applicants are:

• City Lights Production, unincorporated Clark County
• GGCPA SE, Nye County
• GGGCPA SE 3, unincorporated Clark County
• Lyxe Consulting, Las Vegas
• NV Cloud 420 Lounge, Las Vegas
• Royal Tree TLC, Las Vegas

Reason for Disqualification

According to the CCB, the applicants failed to meet the social equity residency requirements, which mandate residency in areas significantly impacted by poverty and high arrest rates. As reported by The Nevada Independent, these criteria are crucial for advancing in the licensing process.

Eligible Applicants Moving Forward

Despite the disqualifications, four Las Vegas-based social equity applicants will move forward in the process:

• Greenwood Investment Group
• MedSnSin
• N&D Enterprises
• Sunflower Compassionate Co.

Background and Process

In 2022, thirty applicants entered the original pool for social equity licenses. On November 30, a computer randomly selected ten applications for review. The recent CCB decision to disqualify six applicants is part of the ongoing review process to ensure compliance with established criteria.

Next Steps for Disqualified Applicants

The CCB plans to return the $2,500 application fee to the applicants who are no longer proceeding in the licensing process. Additionally, the CCB is reaching out to eight applicants who meet the residency requirements but were not selected in the 2022 drawing to determine if they wish to be entered into a second drawing to replace the disqualified companies.

First Licensed Consumption Lounge

In February, the CCB issued the first license for a cannabis consumption lounge to Smoke and Mirrors in Las Vegas, marking a significant milestone in Nevada’s cannabis industry.

The disqualification of six social equity consumption lounge applicants highlights the importance of meeting residency criteria in Nevada’s cannabis licensing process. As the CCB continues to refine the list of eligible applicants, the next steps will be crucial for the future of social equity initiatives in the state’s cannabis industry.