SALT LAKE CITY (AP) — Utah's decision to award a smaller number of medical marijuana grower licenses has sparked protests from rejected applicants who claim the state is granting licenses to unqualified cultivators and will create a cannabis shortage.
Colorado-based marijuana company North Star Holdings LLC claims in a formal appeal to Utah state officials that some awardees have no experience with cannabis or farming. Tintic United Bioscience LLC's CEO Michael "Caddy" Cadwell says his company is also planning to appeal what he considers was an unfair licensing process.
The two companies are also concerned that an undersupply of medical marijuana could create a black market.
State agriculture officials say they awarded eight licenses despite the law allowing up to 10 growers to avoid an oversupply of marijuana. The program is set to open next year.