Please ensure Javascript is enabled for purposes of website accessibility

Missouri Announces First Seed-to-Sale Cannabis Licenses

By Eric Volkman - Feb 5, 2020 at 8:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The winners will help provide the tech foundation supporting the state's medical marijuana industry.

The state of Missouri's Department of Health and Senior Services has published a list of the first six companies it is awarding medical cannabis "seed-to-sale" licenses to operate in the state.

The winners are MJ Freeway, Bio-Tech Medical Software, Swin, Artemis Agtech, Validated Housing, and Retail Innovation. There were also two companies turned down for permits: Leaf Logix Technologies and Canna Botanicals. All eight are privately held.

Although the name might imply otherwise, "seed-to-sale" refers to, in the department's words:

... [a] software system designed to perform functions necessary to fulfill a licensed or certified facility's responsibilities in tracking medical marijuana from either the seed or immature plant stage until the medical marijuana is sold to a qualifying patient or primary caregiver.

Marijuana leaf on PC keyboard.

Image source: Getty Images.

The announcement is the latest development in the fast-moving build-out of Missouri's medical marijuana industry. The production and sale of this form of the drug was made legal in late 2018, although like most other central U.S. states, recreational cannabis is still not permitted. (It has, however, been decriminalized.)

Last month Missouri began licensing 192 medical marijuana dispensaries. Several publicly traded cannabis companies vied for permits, but these efforts fell short. Grassroots -- soon to become a subsidiary of Curaleaf (CURLF -2.38%) if and when a slow-burning buyout is finalized -- was an unsuccessful applicant, as was Cresco Labs (CRLBF -0.29%).

Grassroots, Curaleaf, and Cresco Labs have not commented so far this year on developments in Missouri. On Wednesday, both Curaleaf and Cresco Labs shares fell to close around 3% lower on the day.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Cresco Labs Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Curaleaf Holdings, Inc. Stock Quote
Curaleaf Holdings, Inc.
$5.91 (-2.38%) $0.14
Cresco Labs Inc. Stock Quote
Cresco Labs Inc.
$3.47 (-0.29%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.