Maryland will be the 20th state in the nation to launch adult-use cannabis sales July 1, less than eight months after voters approved a constitutional amendment put forward by the state Legislature.
With Maryland home to 6.2 million residents, 45% of the U.S. population will have access to adult-use cannabis, based on 2022 state population data from the U.S. Census Bureau.
Before 2022, less than 30% of the nation’s population had adult access to the federally illicit plant. But nine states coming online with adult-use sales in just the past 18 months—Montana, New Mexico, New Jersey, Vermont, Rhode Island, New York, Connecticut, Missouri and Maryland—has closed the accessibility gap.
Specifically in Maryland, licensees with existing medical retail facilities that have paid a one-time conversion fee—8% of 2022 gross revenue of a dispensary, but not to exceed $2 million—will be afforded the opportunity to capitalize on a first-mover advantage with the state allowing up to four retail facilities per company. And the rewards could be huge.
Not only is Maryland the fifth most densely populated state in the U.S., according to the Census Bureau, but it also borders Delaware, Pennsylvania, Virginia and West Virginia, none of which have adult-use sales. While Delaware and Virginia have legalized adult-use cannabis, they have yet to launch commercial retail programs. The same goes for Minnesota, where Gov. Tim Walz signed legislation May 30.
And with some of the biggest cannabis operators in the world, like Curaleaf, Green Thumb Industries, Cresco Labs, Columbia Care and others, chomping at the bit to convert their operations to adult use in New York—where regulations have prohibited them from participating in the program until at least the end of this year—Maryland has become one of the most attractive East Coast markets to make headway this year.
Curaleaf announced this week that all four of its dispensaries in Maryland will convert to adult-use sales for this Saturday’s launch. The company’s retail facilities in Montgomery Village, Frederick, Columbia and Reisterstown will host events featuring entertainment, food, swag and prizes.
“Over the past few years, it has been incredible to witness the continued expansion of legalization across the East Coast,” Curaleaf CEO Matt Darin said in a press release. “We’re proud to be a part of this historic day in Maryland and serve the growing community of cannabis consumers across the region.”
Serving Maryland’s medical cannabis market since 2017, Curaleaf executives said the transition to adult-use sales will not alter the company’s commitment to its patient community. In 2023, the state’s licensed dispensaries have reported nearly $40 million per month in medical cannabis sales, according to the Maryland Cannabis Administration.
In addition to preserving the integrity of the medical program, Gov. Wes Moore reinforced the state’s commitment to promote equity and restorative justice as the adult-use program moves forward and progresses. On June 26, he addressed roughly 200 state regulators, advocacy organizations and industry stakeholders during the Cannabis Regulators Association’s annual conference in Annapolis.
“In the past, cannabis policy has been used as a cudgel to oppress, jail, and discriminate against our fellow citizens, especially people of color; and the war on drugs didn’t just fail, it made us weaker as a nation,” Moore said. “But now, we are writing a new chapter in the story of cannabis in America—a chapter focused on equity and economic growth. It’s time we moved away from this false choice that says we must pick an economy that is equitable or an economy that is growing—we can, and we will, do both.”
Through legalization, Maryland established an Office of Social Equity charged with promoting inclusion, accountability and fairness for businesses to enter, compete and succeed in the adult-use cannabis market.
In addition, Maryland’s first round of cannabis licensing for new market entrants will be available exclusively to social equity applicants, who will be financially backed by a cannabis business assistance fund created by the state Legislature. These licenses are expected to be issued starting in early 2024.
In the meantime, existing medical operators will be the first to market in a transition that provides Marylanders quick access to regulated products—a key ingredient to weeding out the illicit market when possession and consumption are legalized. Also beginning July 1 in Maryland, adults 21 and older will officially be allowed to legally possess up to 1.5 ounces of cannabis and home cultivate up to two plants in their private residencies.
“On the ballot last November, Marylanders made it clear they wanted an end to cannabis prohibition in the Free State. That historic moment has arrived,” Olivia Naugle, senior policy analyst at the Marijuana Policy Project, said in a public statement. “These new laws will dramatically reduce police interactions for cannabis, and provide adults 21 and older with safe, legal access to cannabis products.”
Green Thumb, Verano and Trulieve also announced they will begin serving adult-use customers Saturday at their Maryland dispensaries.
Green Thumb’s RISE dispensaries in Hagerstown, Joppa, Silver Spring and Bethesda will open their doors at 8 a.m. Each facility will donate a portion of profits from the first day to local nonprofit organizations, including Mission of Love Charities, Explore MD Cannabis and I Support The Girls.
“It is truly an honor to celebrate this milestone alongside the people of Maryland and witness the end of Prohibition 2.0 as the 20th state in the country launches adult-use cannabis sales,” Green Thumb founder, Chairman and CEO Ben Kovler said in a press release. “We believe cannabis promotes positivity, and we are proud to provide access to high-quality cannabis products … to more people who say ‘yes’ to well-being.”
Green Thumb’s locations in Silver Spring and Bethesda, specifically, are located just outside of Washington, D.C., where voters also legalized cannabis for adult use, but Congress has repeatedly blocked the district from establishing a regulated adult-use market.
At Trulieve, which has dispensaries in Halethorpe, Lutherville and Rockville, the company is offering various customer specials, including a limited supply of cannabis clones available at each location, to coincide with Saturday’s launch.
“We are proud to be part of history as the state expands to include adult use,” Trulieve CEO Kim Rivers said in a press release. “We look forward to commemorating the occasion on Saturday alongside the many Marylanders who voted for the freedom to use cannabis for personal consumption.”
And Verano will open four Zen Leaf dispensaries to adult-use customers on July 1, including locations in Elkridge, Germantown, Pasadena and Towson. In addition, the company has 38,000 square feet of indoor cultivation and processing in Jessup.
“As a resident of Maryland, it’s incredibly rewarding to witness this historic change right here in my home state, and to be on the frontlines of the beginning of a new era where safe, legal cannabis will serve as a positive catalyst for social progress and economic growth,” Darren Weiss, Verano’s president, said in a statement provided to Cannabis Business Times.
Many other existing medical operators, including CULTA and Mary & Main, have prepared their businesses for the adult-use rollout.
Meanwhile, companies like TerrAscend have made recent moves to enter the state market through acquisitions. The company, which closed a $22-million deal June 28 to acquire Peninsula Alternative Health, announced the previous day a $6.75-million definitive agreement to acquire Blue Ridge Wellness—what will be its third dispensary in the state.
“Adding a second high-performing medical dispensary in Maryland, and soon to be third, is an important step in our strategy to become a market leader in the state,” Jason Wild, executive chairman of TerrAscend, said in a press release.
“We expect Peninsula to quickly become one of our highest performing dispensaries nationwide,” he said. “With less than a week until the launch of adult-use in Maryland, we are focused on signing additional acquisitions and reaching the four-dispensary cap as our Northeast business unit will soon be operating in Maryland under the same successful business model we built in New Jersey.”
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