5502 TRANSFER OF EQUAL OR MAJORITY OWNERSHIP OR CONTROL

5502.1 At least thirty (30) days before executing an agreement that will result in the transfer of ownership or control of fifty percent (50%) or more of the ownership interest or common stock of an entity that holds a licensed medical cannabis business, the current licensee shall submit to the Board an application for a transfer of equal or majority ownership or control.5502.2 A licensee shall not complete the sale or transfer of fifty percent (50%) or more of its ownership or control of an entity that holds a licensed medical cannabis business until the licensee has received written approval from the Board of the sale or transfer.5502.3 If a licensee transfers ownership or control of fifty percent (50%) or more of its ownership or control of an entity that holds a licensed medical cannabis business without Board approval, the license shall automatically be deemed void and shall be surrendered to the Board upon demand.5502.4 The Board shall not approve an application for a transfer of fifty percent (50%) or more of its ownership or control of a licensed medical cannabis business until a complete application providing the following information is filed:- (a) The legal name or trade name of the business and a copy of the trade name registration, if applicable;

- (b) The name, address, date of birth, and social security number of the individual owner, partners, limited liability company or partnership member, principal officers, directors, or shareholders (no P.O. Boxes will be accepted);

- (c) The Certificate of Good Standing for the partnership, limited liability company or partnership, or corporation, issued within thirty (30) days of the date of submission of the application;

- (d) A Basic Business Registration with a General Business registration endorsement;

- (e) A certificate of occupancy for the premises issued in the name of the new owner, if applicable;

- (f) Evidence that the transferee has entered into a bona fide agreement with the owner of the building to lease, purchase, or occupy the premises;

(g) A signed and notarized Acknowledgment and Attestation form;

(h) Information on the source of funds used to acquire the ownership or control interests of the business;

(i) A copy of both the Bill of Sale and the Purchase and Sale Agreement between the licensee and the transferee, if such documents exist; and

(j) A notarized and signed copy of the Transfer of License Affidavit Form.

5502.5 The proposed transferee(s) shall pass a criminal background check as required by the Act and the regulations.

5502.6 The proposed transferee(s) shall not operate the licensed medical cannabis business until they have received a license issued by the Board.

SOURCE: Emergency and Third Proposed Rulemaking published at 58 DCR 3299 (April 15, 2011)[EXPIRED]; as amended by Emergency and Fourth Proposed Rulemaking published at 58 DCR 7207 (August 12, 2011)[EXPIRED]; as amended by Final Rulemaking published at 58 DCR 10128, 10199 (December 2, 2011); as amended by Final Rulemaking published at 60 DCR 10061 (July 12, 2013); as amended by Final Rulemaking published at 67 DCR 5383 (May 22, 2020); as amended by Final Rulemaking published at 71 DCR 002388 (March 8, 2024); as amended by Final Rulemaking published at 73 DCR 002136 (February 20, 2026).