Ohio Cannabis Co. dispensary in Canton awarded provisional recreational license

CANTON - A local medical marijuana dispensary has received a provisional license for recreational sales and at least two other existing dispensaries have applied for the state's dual-use licenses.

Provisional licenses are a step toward the certificate of operation needed to legally sell cannabis to recreational users. The Division of Cannabis Control, created by the voter-approved law to legalize recreational use, began awarding provisional licenses last week to existing medical marijuana cultivators, processors, dispensaries and testing laboratories.

For the first two years, the state is only awarding recreational licenses to existing medical operators. The products also will continue to be the same as what's available under the medical program until lawmakers establish rules for the recreational market, which is expected to occur in September.

The Ohio Cannabis Co. dispensary at 4016 Greentree Ave. SW in Canton was among the first to receive a provisional dual-use license and remains the only local business awarded one, according to the state's online database.

Co-founder Brian Wingfield said Ohio Cannabis submitted applications for dual-use licenses at its three dispensaries on June 7, the first day the state made applications available. Canton's was completed first, followed by the Piqua and Upper Sandusky locations.

"We're trying to move full-bore ahead," he said.

The company returned additional paperwork for the Canton license and is awaiting more information about scheduling the final checks for the certificate of operation, Wingfield said.

First sales anticipated to begin in July

The Division of Cannabis Control has stated that it would review applications in the order in which they are received. Under the law, the state must issue licenses by Sept. 7 but some industry representatives think sales could start in the coming weeks.

“We have every expectation of being able to open all locations, including our Canton location, in that first round of dispensaries to open in Ohio expected likely in early July," said Kate Ols, executive vice president for the Midwest and Northeast regions for multi-state operator Acreage Holdings. (Information has been corrected to fix an error. See correction at end of story.)

Acreage has five dispensaries in Ohio doing business as The Botanist and a cultivation and processing facility in Middlefield. As of Thursday, only the Akron dispensary had a provisional dual-use license.

Ols said applications for The Botanist locations were identical, so she expects the others are still in the "paperwork stage." Adjustments for adult-use sales include confirming that customers are 21 or older at the door and labeling products differently ― without the associated medical and patient registry information.

"So there’s a few differences, however, I think the biggest of which is obviously maintaining security and safety, given the influx of traffic the dispensaries are expected to see,” Ols said.

Pete Nischt, vice president of compliance and communications for Klutch Cannabis ― operator of The Citizen dispensaries in Canton and Lorain and a cultivation and processing facility in Akron ― also expects non-medical sales to begin at some stores in the coming weeks.

However, he said, "It's not as simple as just kind of flipping a switch."

Read more: These Ohio dispensaries could be first to sell recreational marijuana – but not yet

Dispensaries prepare for recreational customers

Nischt believes that the state is working as fast as it can with consideration of the supply chain since all the businesses that touch adult-use products from cultivators to dispensaries will need to be approved for dual-use. Dispensaries also need to ensure that they don't run out of products for medical patients.

"We're making sure that the stores are adequately stocked and that we're adequately staffed so that on day one, we're going to have enough to go around," Nischt said.

Businesses have been hiring to prepare for the additional sales.

Klutch Cannabis employs more than 255 people among its Akron facility and two dispensaries. As long as there are no unexpected changes with the recreational rollout, Nischt said the company will double its staff in the next 12 to 18 months.

Wingfield said the Ohio Cannabis Co. also is doubling its staff in Canton and currently has between 25 to 35 employees there.

The state recreational program also allows existing cultivators and standalone dispensaries to apply for new dispensaries. The Botanist, Klutch Cannabis and Ohio Cannabis Company are each eligible for three new licenses.

A lottery on June 21 determined the order in which companies would be able to submit their preferred sites. A new rule that prevents dispensaries from locating within a one-mile radius of another dispensary has prompted competition and all three company representatives declined to share the sites under consideration.

“That process is set to kick off for actual location submissions ... in early July and then we should start to see those licenses being issued in September," Ohls said.

Zen Leaf, the only other medical dispensary operating in Stark County, did not respond to a request for comment.

Reach Kelly at 330-580-8323 or kelly.byer@cantonrep.com.

Correction: Kate Ols is the executive vice president for the Midwest and Northeast regions for multi-state operator Acreage Holdings. Her name was misspelled in this story when first published on June 27.

This article originally appeared on The Repository: Canton medical dispensaries taking steps to add recreational sales