Investors sought for cannabis dispensary

Dec. 15—DANVILLE — Seven Point of Illinois CEO Brad Zerman is seeking investors in his efforts to build Danville's second adult-use cannabis dispensary on Eastgate Drive.

"I launched this crowdfunding page more for to get the word out and get interest in the store," Zerman said.

He said some crowdfunding sites allow cannabis businesses.

He said it's a way to raise a little more money, which would be a small part of the overall money needed.

Zerman said it's a marketing effort to give small investors a chance to invest in a cannabis business.

Zerman said they set up the crowdfunding page on Mainvest.

"With the difficulty in raising capital for cannabis companies right now, we thought this was a potentially interesting way to get local people involved in the success of the business," according to Zerman, adding that some other cannabis business owners have had success with crowdfunding.

More information can be found at https://mainvest.com/b/seven-point-danville.

As of Tuesday morning, it has had 31 investors raise $22,600. The investment target is $75,000.

In addition to Seven Point's cannabis dispensary license, it also won two craft growers licenses through the state, with Seven Point and Harvard Grow LLC.

Zerman said he's selling all licenses and assets except for the dispensary license for Danville. The focus is on Danville.

"We are going to probably go out and raise half a million to $1 million ..., " he said, adding that they also will have more invested in their own capital.

He said they were applying for a construction loan and have a floor plan designed for the cannabis dispensary. They will use an interior designer from another project, he added. Engineers had been hired for soil testing.

Zerman said he's working with Reed Construction of Chicago.

Zerman said they've requested an extension from the state in opening the dispensary because they won't meet the one-year deadline with the license.

He doesn't expect to open for another year. They may break ground as early as March.

He said they'll take the winter months to finalize engineering drawings and site work, meet with planners and work with the city.

"We're trying to get this going," Zerman said. "It's going well."

He still thinks Danville is one of the best locations in the state for another cannabis dispensary.

"We're still going to try to do consumption at the location," he too added. They will build the dispensary first.

Danville Mayor Rickey Williamis Jr. has said he's against an on-premises cannabis consumption lounge inside the cannabis dispensary planned in front of the Econo Lodge off Lynch Road at 388 Eastgate Drive.

According to the Illinois Department of Financial and Professional Regulation, the Cannabis Regulation and Tax Act permits local governments to authorize on-site cannabis consumption lounges. The department does not license on-site consumption lounges.

The state earlier this year reported that all businesses awarded conditional licenses have 180 days to select a physical storefront location and obtain the full Adult Use Dispensing Organization License. If a conditional licensee is unable to find a suitable physical location within the 180-day period, they may request an extension of 180 days. Once issued an Adult Use Dispensing Organization License, a business may begin purchasing and dispensing adult use cannabis.

Danville aldermen in November 2021 approved a special-use permit for a second cannabis dispensary in Danville.

The council approved amending the city's zoning code to comply with state law to allow one qualifying applicant or Social Equity Justice involved lottery winner to locate within 1,500 feet of an early approval adult-use cannabis site.

Zerman and Seven Point won a license through the social justice lottery for the Danville region.

Zerman has said the dispensary will not be a cookie cutter store and will have a wide variety of products and prices. There would be a space adjacent to the dispensary to be used for on-site consumption if approved or to lease to another business.

Danville already has one cannabis dispensary. Sunnyside Danville opened in May 2020, nearby at 369 Lynch Drive in the former Big Boy restaurant.