Selling Medical Marijuana License for $20 Million

Posted by Happy Leaves on

The company only applied for the license as a backup plan, and is now trying to sell it on.

by Chris Moore

This June, the Pennsylvania Department of Health awarded twelve licenses allowing businesses to grow cannabis for medical use. But shortly after the announcement came rumors that some of these businesses were trying to flip these licenses for a profit. Health Department spokesperson April Hutcheson quickly put the rumors to rest, noting that “no permit may be sold or transferred without approval of the Department of Health.”

This week, it has been confirmed that one of the businesses that received a license is for sale, license included. A buyer willing to part with the princely sum of $20 million can purchase 100 percent of Franklin Labs LLC, along with the commercial grow license that the company was awarded in June. The offer does warn that the transaction must be approved by the state Department of Health, and notes that “the purchase of the company involves a high degree of risk, including the federal government’s current characterization of the growing and sale of medical marijuana as a felony.”

Franklin Labs CEO John Pohlhaus explained that the company has also applied for a special clinical research (CR) license, and only applied for the grow license as a backup plan. The CR license would allow the company to partner with a teaching hospital to conduct research on medical cannabis. “Our business has always wanted to do medical research. We’ve been clear about that from the beginning,” Pohlhaus said. “We applied for the commercial grow license only because the CR rules weren’t out. It was a backup. There’s nothing nefarious about it.”



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