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jaredsparks t1_j3r1nkx wrote

Reply to comment by 1234nameuser in Dan Haar: Today we celebrate CT's cannabis market. What happens in 5 years? by gyokuro

It was intended to be socially equitable, but in the long run it likely won't be due to the massive amount of money needed to fund a grow or dispensery operation.

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AhbabaOooMaoMao t1_j3wjocm wrote

Why not some of each?

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jaredsparks t1_j3ydaue wrote

This is the problem. The social equity applicants are required to own 51% or more of the grow or dispensary operation. But social equity applicants are by definition low income. To build a proper grow or dispensary, you need at least a few million dollars, and nobody is going to invest several million dollars into an operation where they don't have control over what happens. No one is going to invest 3 million dollars into an operation where they only own 49% or less of the business.

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AhbabaOooMaoMao t1_j40l0xo wrote

>No one is going to invest 3 million dollars into an operation where they only own 49% or less of the business.

They already happened. People did invest.

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jaredsparks t1_j413hob wrote

Yes but it's a huge hindrance. Note: I'm involved in the industry.

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AhbabaOooMaoMao t1_j417h56 wrote

Who* was hindered?

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jaredsparks t1_j41833y wrote

The average person does not want to invest a few million dollars into an operation unless they have control over that money. If they only own 49% or less of the company, they have no control over the money. The majority shareholder of the LLC would have control and that's a problem.

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AhbabaOooMaoMao t1_j41jgq1 wrote

Hmmm, no shortage of investors though. Seems like you don't know what you're talking about.

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jaredsparks t1_j41t6h7 wrote

OK Mr. Expert. Whatev.

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AhbabaOooMaoMao t1_j41vntd wrote

Oh no, you're right. I'm sorry. The license fees were too high, nobody could find any investors and it was so bad that nobody even submitted an application.

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jaredsparks t1_j41w6gq wrote

You're missing the point. I never said that.

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AhbabaOooMaoMao t1_j422wcj wrote

Well lay it out for me.

You would have done it differently?

Would it have passed into law?

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