Advisory Committee on Business Plan sets financial parameters for success

By Brandon Dunn

Wednesday morning the final of 10 advisory committees established by DHSS met at the Governor’s Office Building in Jefferson City to determine the weight and measure of nearly 50 questions related to the business plans of aspiring medical marijuana licensees in the state of Missouri.

The committee, comprised of Kelly Dyer with Missouri Chamber of Commerce and Industry, Rick Nichols, President of River Region Credit Union, Leslie Tanner with Central Bank, and Michael Lanahan from the Department of Economic Development, joined moderator Richard Moore to review, amend, and finalize questions 19-75 of the Facility License Application Questions Draft.

The approved and finalized text of the questions follows, original text of questions can be found here:

19 Provide documentation of sources of capitalization to demonstrate that you have sufficient liquid assets to successfully carry out the activities described in the application. Any capitalization claimed, may not be committed for another facility license application or any other purpose. Without evidence showing a lower amount of capitalization is adequate for your facility, the following amounts shall be considered satisfactory.

• For cultivation facility applicants – $300,000
• For dispensary applicants – $150,000
• For infused product manufacturing facility applicants – $150,000
• For transportation applicants – $150,000
• For testing applicants – $200,000

(Critically Important)

20 Will the business have professional liability insurance? If yes, describe the anticipated insurer, policy terms, and limits. (Important)

21 Will the business have product liability insurance? If yes, describe the anticipated insurer, policy terms, and limits. (Important)

22 Will the business have business interruption insurance?  If yes, describe the anticipated insurer, policy terms, and limits. (Slightly Important)

23 Will the business have property insurance, not including insurance to cover marijuana loss? If yes, describe the anticipated insurer, policy terms, and limits. (Slightly Important)

24 Will the business have property insurance to cover marijuana loss? If yes, describe the anticipated insurer, policy terms, and limits. (Slightly Important)

25 If a license is granted, does the business have a legal right (own, option to buy, lease, contingent agreement, etc.) to operate at the proposed location? If yes, describe and provide evidence.  Include the length of time you have secured the business location and submit acknowledgement from the building owner if you do not own the premise. (Highly Important)

26 Describe your plan to address diversity, such as individuals belonging to a racial minority group as defined in section 37.013 RSMo, women, and/or veterans in ownership and/or staffing.  (Important)

27 Describe your plan to maintain an adequate supply of marijuana? (Important)

28 Describe your plan to ensure safety and security of Qualifying Patients and the community. (Highly Important)

29 Describe your procedures to prevent diversion of medical marijuana into the illegal market. (Critically Important)

30 Describe your plan for making medical marijuana available to low income Qualifying Patients.  (Highly Important)

*Per Richard Moore, low income info will be made available via patient registry information through seed to sale and pos by DHSS. Questions completed by patient on the patient application.

31 Will anyone in ownership or management have, or are you retaining a contractor or consultant with, work experience in pharmacology?  If yes, list all and describe.(Important)

32 Will anyone in ownership or management have, or are you retaining a contractor or consultant with, work experience in  medicinal products?  If yes, list all and describe. (Important)

33 Will anyone in ownership or management have, or are you retaining a contractor or consultant with, work experience in community pharmacy?   If yes, list all and describe. (Important)

34 Deleted

35 Will anyone in ownership or management have, or are you retaining a contractor or consultant with, sales experience in a highly regulated or pharmaceutical industry?  If yes, list all and describe.(Important)

36 Will anyone in ownership or management have, or are you retaining a contractor or consultant with, work experience in regulatory compliance?   If yes, list all and describe. (Important)

37 How will the business recruit qualified employees? (Important)

38 How will the business train employees on diversity awareness?(Slightly Important)

39 How will the business train employees on sexual harassment? (Slightly Important)

40 How will the business train employees on workplace violence? ( Slightly Important)

41 How will the business train employees on security and safety? (Highly Important)

42 How will the business train employees on company policies? (Slightly important)

43 deleted

44 deleted

45 deleted

46 How will the business become operational within 1 year of the license being awarded? (Critically Important)

47 What is the plan for inventory management and tracking orders? (Critically Important)

48 What is the plan for storage of marijuana? (Critically Important)

49 What is the plan for accounting? (Highly Important)

50 Provide an analysis of the strengths, weaknesses, opportunities, and threats associated with the proposed business and explain how you intend for the business to become successful. (Important)

51 – 54 deleted rolled into 50

55 Has a market analysis been completed for the business? (Slightly Important)

56 Describe your estimated monthly revenues and expenses for the business in the first 2 years of operation.  What are the estimate based on?(Highly Important)

57 – 63 deleted

64 Including a timeline, what is your staffing plan for the business in the first 2 years of operation?  (Important)

65 How will the business source non-marijuana products and equipment necessary for the business? (Important)

66 How will the business fulfill orders? (Important)

67 deleted *language added to 47

68 What is your marketing plan, including to whom, method of delivery, and costs? (Important)

69 How will the business will set pricing, initially and thereafter, based on supply and demand? (Slightly Important)

70 What are the necessary steps that will need to occur for the business to succeed? (Important)

71 deleted

72 Describe the  financial plan for the business.  Specifically address financing if FDIC banks and NCUA insured credit untions currently  do not provide loans or financing to the legal cannabis industry and how you will complete financial transactions. (Highly Important)

73 Describe the odor control plan, including why a plan may not be needed for your type of business or location. (Important)

74 Describe the plan to prevent minors from illegally obtaining your product. (Critically Important)

75 Will the business offer health insurance for your employees? (Slightly Important)

No additional questions were added by the committee.

The questions, deletions, amendments, and sustained were unanimously approved as read.