Recent ruling opens door for multi-state medicinal cannabis operators in Missouri | Missouri BusinessPosted by On


A Thursday ruling from a federal judge changed the landscape for the medicinal cannabis market by ordering a permanent injunction against Missouri’s residency requirement.

Since 2018, Missouri-based marijuana companies, such as dispensaries and manufacturing plants, have been required to be at least 51% owned by Missourians with at least one year of residency.

During last week’s hearing, Judge Nanette Laughrey of the Missouri Western District made the preliminary injunction against this requirement, which she had ordered in June, into a permanent injunction.

Plaintiff Mark Toigo, a Pennsylvania resident and minority owner in Organic Remedies MO Inc., sought to end what he described as a “sweetheart deal” for residential operators, which he argued was in violation of the commerce clause of the U.S. constitution.

With the residency requirement gone, investors like Toigo no longer have to maintain a minority interest in cannabis-related businesses. Having equity with local vendors will allow him to help them grow and become more competitive, he said.

“It’s good for everybody in Missouri who wants to grow the cannabis space,” he said. “Now you don’t have to necessarily find Missourians to invest. You can bring in out-of-state investors, you can bring in capital from all over to improve the program.”

One multi-state operator that…

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A Thursday ruling from a federal judge changed the landscape for the medicinal cannabis market by ordering a permanent injunction against Missouri’s residency requirement.

Since 2018, Missouri-based marijuana companies, such as dispensaries and manufacturing plants, have been required to be at least 51% owned by Missourians with at least one year of residency.

During last week’s hearing, Judge Nanette Laughrey of the Missouri Western District made the preliminary injunction against this requirement, which she had ordered in June, into a permanent injunction.

Plaintiff Mark Toigo, a Pennsylvania resident and minority owner in Organic Remedies MO Inc., sought to end what he described as a “sweetheart deal” for residential operators, which he argued was in violation of the commerce clause of the U.S. constitution.

With the residency requirement gone, investors like Toigo no longer have to maintain a minority interest in cannabis-related businesses. Having equity with local vendors will allow him to help them grow and become more competitive, he said.

“It’s good for everybody in Missouri who wants to grow the cannabis space,” he said. “Now you don’t have to necessarily find Missourians to invest. You can bring in out-of-state investors, you can bring in capital from all over to improve the program.”

One multi-state operator that…



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