Illinois medical marijuana hb 1
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Some Illinois Medical Marijuana Growers Are Having Money Issues

Illinois medical marijuana hb 1A few months ago I sat down with an investor from Illinois. The man and his investment firm were in the process of trying to obtain one or more medical marijuana cultivation licenses in Illinois. The man was touting just how lucrative each license would be because of how large a state Illinois is as measured by population, and how few cultivation licenses will be issued. While I acknowledged that the limited number of cultivation licenses is significant in that regard, I told him at the time that the limited patient base would be an issue. I don’t think he seemed to understand what I was saying.

We agreed to disagree, and I took my laptop and went home. It wasn’t a big deal to me because I don’t live in Illinois, and more importantly, I’m not trying to get in on the Illinois medical marijuana industry. Unfortunately for the investor, his firm did not win a cultivation license. It sounds like his firm may get another shot though, as many companies that won licenses are scrambling for investment money. Per Marijuana Business Daily:

A lawsuit has been filed claiming that Cresco Labs, a license winner, lacks enough financing to get a state permit to grow MMJ. The Sun-Times said a subcontractor for Cresco is seeking $29 million in addition to the $7 million it already has to develop the company’s farming operations.

In Grown Farms LLC 2, another license winner, is seeking $13.5 million, the newspaper reported, citing an internal document.

Green Thumb Industries gave up the license it was awarded, saying it didn’t want to pay a $200,000 licensing fee due to the low initial patient counts. The company also would’ve needed $2 million in an escrow account to accept the permit.

Currently there are only 1,600 medical marijuana patients in Illinois. Due to such a restrictive list of qualifying conditions in Illinois, I don’t see that number expanding exponentially anytime soon. I think that a lot of people clamoring to get into Illinois’ medical marijuana industry on the grower side are going to be in for a rude awakening, and it sounds like that is already occurring for some companies. To put into perspective just how small Illinois’ medical marijuana consumer base is right now, consider that Illinois only has 1,600 patients for a state with a population of 12.88 million people. Compare that to my home state, Oregon, which has almost 70,000 patients despite only have a population of 3.97 million people. Yes, Oregon’s program is much older, but I think the comparison puts into perspective just how limited the business opportunities are going to be in Illinois until the state expands the list of qualifying conditions to become a medical marijuana patient.

  • In Illinois to get a permit for MMJ a patient has to have two doctors he has known for several years (2 or 3 IIRC) give recommendations. With that kind of choke point they will be very lucky to get 5,000 patients by the time growers are delivering product.

    Essentially MMJ in Illinois is for show. The real deal is the Black Market. Al Capone? He is dead. Why do you ask?

    • Joe

      “In Illinois to get a permit for MMJ a patient has to have two doctors ”
      Not sure where you got that false information. One doctor’s recommendation is all you need in Illinois.

      • I was misinformed. Evidently the rules have been relaxed because the “under the care of the doctor for two or three years” is no longer mentioned. All you need is a diagnosis.

        • bubba

          your correct 14000 people applied , well sort of , 1100 have been fully approved 500 left yet , 11000 stopped the application mid stream…they have yet to finish sifting thru the rest. The biggest issue is the illinois dept of health is whos giving out the cards, it will hit your medical record and potentially your current job could/ will find out but most definitely if you go to find a new gig you might not get the job if they are not 420 friendly and thats a fact. I was a commentator to the ag dept and alot of my commentary was utilized in the jcars rulings, why you might wonder, cause i saw the bs coming down the line til i got that special call, i was told all this would happeni was told not to get deep into the money as i wanted a dispensary and grow then after that special call i did the math….it doesnt add up, people are going to lose money and the biggest rule is how do you make your investors whole if shit hits the fan….i have a property indoor enough to run 300lbs a month after the first 3 months so do that math and then tabulate the fees etc and see what the net profit will be prior to the bud going dry lets say. i learned from what initially happened in Colo they had over 300 dispensaries legit…now only 180+ legit…illinois will never get that big thats the sad part yet other states are watching illinois PILOT program, which btw will end Jan1 2018, to set their rules…and dont get me started on the maintaining the medical card cause i see that going to the shitter as well…..at this rate a dispensary will have to charge 100 and eighth just to make any kind of dough between the licenses fees and taxes….and dont get me started on the streets issue either remember chitown is gangsterville and 8 or 9 of the 59 disp are approved there, the outlying suburbs are deciding what to charge for a disp license eg Desplaines feels the license is worth 100k …go figure money mongers….

      • The proposed rules specify that a bona fide physician-patient relationship must go beyond a simple recommendation for medical cannabis or a consultation for that purpose. They list records that must be
        maintained by doctors and they allow the department to inspect cultivation centers.

        http://www.nbcchicago.com/news/health/Illinois-Medical-Marijuana-Rules-Unveiled-241356631.html

  • Mike m

    Cant get a approved if patiant if your a convicted felon,

    • WMC

      Sort of….. They can only deny if you have a prior DRUG felony conviction.
      Illinois Medical Cannabis Act Reference Sheet
      Denial of ID cards; 410 ILCS 130/65
      Page 19
      “(b) Persons convicted of a drug-related felony or similar local ordinance ineligible”
      Makes no mention of denial for any other felony conviction.

      • M.M

        I called an asked the state,they told me dont even waste my time trying,because a felony from 20 years ago,no drug conviction,no child crime,how can they say its for the ill,im qualified under there rules,got my doctor to sighn off,but felony conviction,disqualifies me,

  • citizens

    Don’t hide the truth about Illinois law marker tell the truth and our concerns This letter is to all law makers in state of Illinois. We the people have the right to medical treatment and can not be discriminated against criminal background, race ,religion, gender, and etc. You do not have the right to deny us medical we the people have rights to receive medical treatment. I say everyone has the rithe eyes of illiniost to medical treatment nobody has the right to deny anybody even if you have a record I say we the people of state of Illinois  that we all need to stand together and sue and make class action suit against idph and state of Illinois and ask for the law makers to resign they do not care about the people and have no business making laws its our right as humans to receive medical treatment I ask the President of the united states what is he going to do about this and I can answer that ? Nothing whoever made these laws should resign.

    This letter is to all law makers in state of Illinois. We the people have the right to medical treatment and can not be discriminated against criminal background, race ,religion, gender, and etc. You do not have the right to deny us medical we the people have rights to receive medical treatment. I say everyone has the right to medical treatment nobody has the right to deny anybody even if you have a record I say we the people of state of Illinois  that we all need to stand together and sue and make class action suit against idph and state of Illinois and ask for the law makers to resign they do not care about the people and have no business making laws its our right as humans to receive medical treatment I ask the President of the united states what is he going to do about this and I can answer that ? Nothing whoever made these laws should resign. If your lawmaker against the care of medical treatment and designing laws that stop people from getting that treatment please resign effective asap.  Let people who care about us in and make laws that help the people. So to the people of Illinois contact your TV station and radio station and let your voice be heard. for example if you have cancer and have a felony you will get denied or any other deliberating condition you will be denied the law maker don’t speak for us let’s stand together. Oh don’t contact ACLU they don’t do anything to help but they help the law makers not the people.

    This program have been approved by a legislative committee, bringing legal marijuana one step closer to reality for qualifying patient

    The Joint Committee on Administrative Rules approved the regulations at a meeting Tuesday in Chicago. Lawmakers claimed they will track every marijuana bud and leaf produced.

    The group discussed rules for both patients who are looking to get relief for a medical condition and growers. It is not clear how many people who have medical conditions are interested in getting registry cards, but the Marijuana Policy Project estimates more than 10,000 patients could eventually sign up in Illinois. Applications could begin as early as September and medical marijuana would be available in 2015.

    State representative Lou Lang told FOX 32’s Joanie Lum he has been working toward this for years.

    “It took me five years to pass this bill and I didn’t do it to create business or revenue. I did it to provide a better quality of life for every sick person in our state,” Lang said.

    This is not true I’m writing letter to every body asking why state Representatives don’t tell the truth cuz Lou lang said every sick person gets help what about those with a record so Lou Lang statement is not true people in the state of Illinois  are denied medical treatment with the new marijuana pilot laws just because their have a record and are treated differently this means everyone is not treated equal with medical treatment in eyes of state of Illinois

  • Doc Deadhead

    OMG, seeking 30 million dollars for a grow to accommodate a couple hundred patients?

    I guess that’s why they are having a hard time finding investors!

  • MrBelvedere

    What a mess. The short list of qualifying conditions makes it very similar to the medical marijuana program in DC. After the voters in DC voted in *1996* for MMJ, it took *20 years* of city council red tape to actually open the first dispensary. Many of the first round of DC applicants for cultivation centers were actual medical doctors who would do the growing.