Delaware Cannabis Consultant Overview:

How To Open A Marijuana Business in Delaware

Are you interested in starting a cannabis business in Delaware? The cannabis consultants at New Leaf can help you navigate the process!

This summary of Delaware requirements and license application process outlines what it takes to win a marijuana business license. Get started today to meet the demands of consumers! Schedule a free consultation with one of our knowledgeable cannabis consultants in Delaware.

Delaware Cannabis Consulting & License Application Writing Experts

New Leaf Cannabis Consulting is the #1 Top Rated Cannabis Application Writing, Consulting, and Capital Fundraising one-stop-shop in the U.S. We offer a complete range of services from business model formation and planning, to state licensure, to raising capital and finding investors for the business.

New Leaf has worked with over 180 clients in over 16 different states since we opened our doors in 2015. Our success rate is well over 95% across the board. We offer more services than any of our competition.

If you need cash for your cannabis startup, and/or state and municipal license approval for a completely reasonable price, look no further than New Leaf Cannabis Consulting.

Cannabis Market Condition Overview

Business Climate and Timeline

Cannabis License Application Planning Starts Now!
With strong support from residents, Delaware becomes the 22nd state with recreational cannabis approval. In March 2023, the Delaware General Assembly passed two bills, House Bill 1 and House Bill 2. HB 1 regulates the legal personal use of marijuana by adults and HB 2 establishes and regulates the Delaware marijuana industry. The bills passed the Senate with 16-4 and 15-5 votes and recent polls show that 61% of Delaware residents support legalization of adult-use. The bills were enacted on April 23, 2023, without the signature of Gov. John Carney.

Delaware’s competitive, scored licensing process will roll out in three phases.

May 2024: Applications will be accepted for adult-use cultivation licenses

20 open licenses and 10 social equity licenses for small or microbusiness cultivations (2500 sq ft or less)
20 open licenses and 10 social equity licenses for larger cultivations of over 2500 sq ft.

August 2024: Applications will be accepted for adult-use processors/manufacturers

10 open licenses
10 social equity licenses
10 microprocessors

November 2024: Applications will be accepted for retailers/dispensaries and testing facilities

15 open retailer licenses
15 social equity retailers
3 open testing licenses
2 social equity testing licenses

Delaware’s Marijuana Industry

In September of 2024, new regulations will authorize the operation of 30 marijuana retail outlets in Delaware. 60 cultivator licenses, 30 manufacturing licenses, and 5 testing licenses will also be available. The newly established Marijuana Commissioner is tasked with issuing licenses following a competitive, scored process. The Marijuana Commissioner will also be responsible for the inspection and regulation of cannabis facilities.

Similar to alcohol sales, cannabis sales will include taxes (15% on all retail sales), permitted hours, as well as fines for the sale to underage individuals.

Regulation of marijuana sales will be enforced by the Delaware Division of Alcohol and Tobacco Enforcement. Operating a vehicle under the influence of marijuana will have the same penalties as drunk driving.

How to Apply for a Cannabis License in Delaware

The Delaware Division of Alcohol and Tobacco Enforcement through a newly formed Office of Marijuana Control Commissioner will be tasked with Cannabis Licensing and regulation. Regulators can approve and issue up to 30 new retail cannabis licenses for the first 16 months of implementing Delaware’s adult-use program.
HB2 includes a $5,000 application fee for adult-use licenses and includes scoring criteria.

Priority License Application Scoring — Applicants who show that they would provide the following employee benefits and considerations would be prioritized in the license scoring process:

A living wage
Health insurance coverage
Sick and paid leave
Focus on diversity in hiring

Real Estate & Zoning

In most states, you will need to lock down the location for business operations in the form of either a lease, lease with option to purchase, or a purchase agreement.

Most importantly, during the real estate acquisition process, your company MUST make sure that the actual location COMPLETELY adheres to state and municipal regulations regarding distance restrictions from other businesses such as a daycare or school. An example of this would be Dispensary/Retail. Most times you will not be able to locate your dispensary in a section of the city which is not zoned specifically for retail. Your dispensary location cannot be located anywhere else. Check with the Marijuana Commissioner for locality resolutions and ordinances.

Usually the next step is Municipal/City/Township Approval. Nine times out of ten, these steps will need to take place before the full license application can be completed and submitted.

Need assistance getting a Delaware cannabis business license? Schedule a Free Consultation

Delaware Cannabis License Types

Five Types of Adult-Use Licenses in Delaware:

Retail
Cultivator
Manufacturer
Laboratory
Microbusiness

Delaware’s licensing framework also provides for social equity licenses. Microbusiness licenses are reserved for applicants with majority ownership by Delaware residents. Localities would be able to prohibit marijuana businesses from operating in their area through ordinance.Delaware Cannabis License Process and Scoring Criteria

Delaware Cannabis License Requirements

Cannabis licenses are awarded by having a complete and well written application and all required supplemental documentation as well as city approval. An applicant’s criminal history also comes into play as well as past taxes of the owner/directors of the company. And of course, sometimes there is a required proof of capitalization — i.e. proving that you will have enough money in the bank to build out and run your business.

In highly competitive states such as Illinois or New York, there is a scoring process for an extremely limited number of available licenses. Licenses will be awarded to only the best of the best submissions. It is highly suggested that you hire an agency that can provide you with an “above and beyond” application submission.

Eligibility for a Cannabis License in Delaware

To apply for a marijuana license in Delaware, applicants must meet several qualifications and eligibility requirements necessary to receive a license. Each applicant must be 21 years of age or older and is required to undergo a criminal background check.

Application Requirements for Marijuana Licenses in Delaware

To apply for a cannabis business license, you must show compliance with New York laws and local ordinances. To illustrate your commitment to the process, hundreds of pages of technical writing may be necessary.

Some of the necessary documentation includes the following:

License Application (Required Measures and/or Exhibits). A well written application will need to be written in lockstep with the State Regulations for each Exhibit/measure.
Business Plan. Including executive summary, mission statement, market analysis, 5 to 7 year business life-cycle timeline with expansion events. Products and services, management and staff, SWOT analysis, quality assurance and compliance.
Financials. Full 5 to 7 year financial projections, income statement, balance sheet, statement of cash flows.
Operations Manuals, Exhibits and SOP’s such as:
- Inventory and Record Keeping/Diversion
- Quality Assurance Manuals
- Operations Manuals/Procedures for cultivation, processing, dispensary, lab testing, transportation
- Transportation and Distribution Plan
- Employee, Staffing and Training Manuals
- Social and Economic Impact/equity plans/community outreach plan
- Environmental Plans with water and electrical usage plan/manual
- Chemical and Pesticide Storage Plans
- Waste Disposal Procedures
- Accounting and Tax Compliance
- Hemp Research Plan
- Sanitation and Maintenance Plans
- Odor Control Plan
- Patient/Customer Education Manuals (mainly for dispensary/retail)
Labor/Union Compliance Agreements
Training Manuals. New Leaf will design manuals to your specifications, along with state regulations, for all cannabis business models
Regulatory Compliance Manuals. These explain all the different regulatory compliance regulations, such as quality assurance, product recall, packaging and labeling, advertising, hours of operation, patient and/or customer purchase limits, staffing and training, inventory and record keeping, security, tax payment and insurance compliance.
Security Plan. Video Surveillance, Alarm System, Emergency Procedures.
Floor Plans, Blueprints. To-Scale, with Security Overlays. Floor plans of the entire facility.
Corporate Structuring. Social Equity Certification and Registration, LLC and Corporation Registration and FEIN filing, Operating Agreements, Capitalization Tables, Shareholder Rights and Regulations Consultation, Corporate Bylaw Strategy.

Post Licensure Support. New Leaf serves as a liaison between you, your company, and the State Licensing Commission to help you get through the application evaluation. The State, no matter how good your application is, most definitely will have follow up questions and requests for additional documentation and/or information.

Denial Appeal. Denial appeal is also part of the Post Licensure Support.

Financial Requirements — How much does it cost to get a cannabis license in Delaware?

Many states will require what is known as a Capitalization Attestation. What is this, you may ask? A capitalization attestation is usually done by a CPA. It involves submitting your profit and loss statements, bank account information, proof of funds, and an assumption of the costs for startup CapEx and OpEx.

Need Cash for your Cannabis Startup? New Leaf offers a full suite of Investment Capital Fundraising Services including corporate structuring and partnership agreements, 409 (B) company valuations, 5-7 year pro forma financial projections, and more! New Leaf will act on your behalf in actually SHOPPING the deal to our syndicate of accredited investors from across the globe. We can help you successfully raise the capital needed to get your project off the ground. Find out more here.

How to Win a Delaware Cannabis Business License

A step-by-step guide on how to apply for and WIN a cannabis license in Delaware.

Review the state laws, rules & regulations. Learn about the rules and regulations necessary to operate a cannabis business in the State of Delaware. This will help you and your team understand the requirements to win a cannabis license.
Choose a Delaware cannabis business license type. Delaware issues five different primary types of adult-use cannabis business licenses.
Connect with a Delaware cannabis consulting firm. Consider reaching out to a Delaware cannabis consultant. Cannabis business license applications can be extremely complex and time-consuming to write. The professional Delaware marijuana consultants at New Leaf can manage the entire process for you. We can assist you with license application writing services, increasing your chance of winning a cannabis license in Delaware. Book a free consultation today!
Form a business entity. Forming a legal business entity is the next step in the process of applying for a cannabis license in Delaware. LLCs and corporations are the two types most commonly formed by cannabis applicants. Find out which is the best choice for your business goals — we can help.
Select a location for your cannabis business in Delaware. Choosing a property for your cannabis business that meets all the state and local requirements can be complicated as well. Our experience with zoning processes that can help you find the ideal property for your marijuana business.
Build the best team. The team that you list on your application will have a major impact on whether or not you receive a license.
Write a business plan. After securing a location for your cannabis business, the next step is to develop a carefully detailed business plan. Your business plan will help lay out your goals and track progress as your business begins to grow. Business plans can also help attract investors. Investors use them to determine if a business is on the right path and worth putting money into.
Raise capital for your Delaware cannabis business. Although start-up costs for a cannabis business can be significant, careful planning and the right team can make it a huge success. New Leaf can help you craft a detailed plan and get it into the hands of investors.
Write and submit your Delaware cannabis business application. Depending on type of license, applicants may need to write and submit the following documentation: