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Kentucky awards first business license in medical marijuana startup program

Kentucky Medical Cannabis Program
Kentucky's medical cannabis program will begin next year.

Kentucky has issued its first-ever medical marijuana license.

Gov. Andy Beshear announced on Thursday that KCA Labs in Nicholasville received the first license under the state’s medical cannabis program that will launch Jan. 1, 2025.

“KCA Labs is a safety compliance facility," said Beshear in a news conference on Thursday. "These facilities are responsible for testing every medical cannabis product before it gets to a Kentucky cardholder.”

KCA Labs has been in operation since 2019 and has 2,000 clients globally.

The state received 4,998 applications for medical cannabis business licenses that will be awarded through a lottery system.

There’s no limit on licenses for safety compliance facilities, so KCA Labs wasn’t subject to the lottery.

A random drawing will take place Oct. 28 to award licenses to cultivators and processors of medicinal hemp. Next month’s lottery will be conducted by the Kentucky Lottery Corporation and live-streamed to the public.

A lottery to award dispensary licenses will likely take place in November.

The Kentucky legislature passed a bill last year legalizing medical cannabis for people suffering from a range of chronic illnesses, including cancer, multiple sclerosis, chronic pain, epilepsy and post-traumatic stress disorder.

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