Supply shortages and licensing controversies are still hampering Kentucky’s nascent medical marijuana market a year into the program’s launch.
Medical cannabis was supposed to launch with as many as 48 dispensaries on Jan. 1, 2025. With the planned grand opening of The Speakeasy Dispensary in a busy Lexington shopping area, the state could have a total of two operational MMJ dispensaries by mid-January 2026 – and that’s if supplies last.
The Speakeasy Dispensary will open Jan. 15, the Herald Leader reported. However, product availability will be limited and sold on a “while supplies last” basis. Patients may also be subject to purchase limits, the company said.
The cautious approach comes after a supply shortage forced the state’s first medical cannabis dispensary, The Post in Beaver Dam, to close just days after its December grand opening.
The Post completely sold out of its initial inventory, demonstrating the pent-up demand and severe supply constraints in Kentucky.
The Post has since announced plans to reopen as soon as Jan. 16, according to Fox 56.
Slow beginnings for Kentucky medical cannabis market
Kentucky legalized medical marijuana in 2023. Sales could reach $126 million in 2026, according to an MJBiz Factbook projection.
According to WVXU, other licensed dispensaries planning to open locations in the state include:
- NatureMed, a company with dispensaries in Arizona and Missouri that has four Kentucky licenses
- Michigan-based C3 Industries, which operates the High Profile brand and plans to start construction on a dispensary early this year
Kentucky has licensed 16 cultivators.
However, an ongoing controversy surrounding the state’s 2024 license lottery is adding to challenges.
The process drew criticism from local business owners who felt the steep application and licensing fees – a $5,000 application fee and a $30,000 nonrefundable license fee – were prohibitive.
Critics said the structure favored larger, established cannabis companies that could afford to flood the lottery with applications through multiple LLCs to increase their chances of winning.
The complaints prompted Kentucky Auditor Allison Ball to launch an investigation into the Office of Medical Cannabis’ lottery process in April, citing a need for transparency and integrity.
No public updates on the investigation have been shared.
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