After awarding Cresco Labs a conditional medical cannabis license last month under its Texas Compassionate Use Program (TCUP), the state had decided to take it back.
The company today said that the Texas Department of Public Safety (DPS) issued a retroactive correction to the tabulation methodology used in its conditional license selection process, which it said impacted multiple applicants. Under the corrected tabulation, the conditional license previously awarded and publicly announced by DPS for Cresco Labs Texas has been rescinded, and Cresco Labs Texas has been placed on the TCUP eligibility list.
Cresco Labs maintains that its application merits a conditional license, as originally determined by DPS, and is evaluating its options to work with the state to protect that determination.
Under House Bill 46, the 12 conditional licensees announced under the new tabulation are subject to ongoing DPS due diligence and required to fully operationalize within 24 months of licensure. Cresco Labs Texas said it is eligible to receive a conditional TCUP license in the event any of the conditional licensees does not satisfy these requirements. The Company is prepared to quickly deploy operational and capital resources into Texas once permitted.
"Cresco Labs has a multi-state track record of building patient-first medical cannabis programs in highly regulated markets, and we remain confident in our application’s merits, reflected in the Department's original award," said Cresco Labs CEO Charlie Bachtell in a statement. "We are committed to the Texas medical cannabis program. Cresco Labs has the operational capability, capital position, and patient-centered approach to bring Texas patients the high-quality medicine they deserve, and we will continue engaging with the Department on a path forward."
Texas said its conditional licenses do not grant the applicant permission to cultivate, manufacture, distribute or sell cannabis products until final approval by the department. As a holder of a conditional license, the licensee is subject to the department’s ongoing due diligence evaluation.
Green Thumb Industries and Texas Medica Collective are among the other companies to receive conditional licenses.
